Financial trading platform eToro announced on Monday that beginning next month, its U.S. customers will no longer be able to purchase Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). This decision comes amid the Securities and Exchange Commission’s (SEC) increased regulatory oversight across the financial services industry. It’s worth noting that these particular tokens were labeled as securities by the SEC in market-shaking lawsuits against top crypto exchanges Coinbase and Binance.
An eToro spokesperson confirmed that U.S. customers can still hold and sell existing positions in these coins, but they will not be able to open new ones. The changes are set to take effect on July 12, allowing a month-long window for customers to continue trading the mentioned tokens. Although the spokesperson did not directly reference the SEC’s recent lawsuits, they did mention the rapidly evolving regulatory landscape as a primary reason for the changes.
The company explained that their framework constantly reviews the crypto assets offered to its customers, taking into account the continuously changing regulations. Despite these adjustments, eToro remains committed to supporting crypto assets and providing users with access to various asset classes, including stocks, ETFs, and options.
Interestingly, eToro’s announcement came just days after a similar disclosure from Robinhood, which will also stop supporting Cardano (ADA), Solana (SOL), and Polygon (MATIC) for U.S. customers starting June 27. The company cited a “cloud of uncertainty” surrounding these tokens as the main reason for the change.
Both eToro and Robinhood have expanded their offerings from traditional assets like stocks to include cryptocurrencies over time. Both platforms opened up access to assets such as Bitcoin and Ethereum for U.S. customers in 2018. While the SEC has displayed increased scrutiny towards crypto companies that have allegedly failed to comply with regulations, Robinhood and eToro serve as examples of firms that originated in other industries and are now feeling the pressure due to their connections with the crypto markets.
It is important to consider the potential consequences of such decisions on the broader crypto market. On one hand, increased regulation might reassure hesitant investors and pave the way for institutional adoption. On the other hand, restricting access to certain tokens could lead to decreased market liquidity and limit the options available for individual investors. Ultimately, the balance between innovation and regulation will play a critical role in defining the future of the crypto landscape.
Source: Decrypt
