eToro removes crypto assets considered securities by the SEC

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eToro emphasized that the changes will only affect US customers and assured its commitment to the crypto industry.

Financial trading platform eToro has announced that from next month, US clients will no longer be able to buy Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC) on its platform. The decision comes in response to recent regulatory developments and echoes similar actions taken by Robinhood, another trading app, last week. These tokens have been labeled as securities by the United States Securities and Exchange Commission (SEC) in lawsuits against major crypto exchanges. However, existing positions in these tokens can still be held and sold by eToro’s US clients.

eToro emphasized that the changes will only affect US customers and assured its commitment to the crypto industry. The company operates in over 100 international markets and has an ongoing framework to review the crypto assets it offers in light of the changing regulatory landscape. Meanwhile, Robinhood also revealed last Friday that it would be ending support for ADA, SOL, and MATIC, citing a “cloud of uncertainty” surrounding those tokens. Both eToro and Robinhood began offering crypto assets, including Bitcoin and Ethereum, to their US customers in 2018. Although the SEC has exercised regulatory scrutiny over crypto companies, these shares of eToro and Robinhood reflect the unease felt by platforms with roots in other industries due to their close ties to crypto markets.

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