As a result of recent regulatory attention from the US Securities and Exchange Commission (SEC), social investing platform eToro US announced that customers will no longer be able to open new positions in Algorand, Decentraland, Dash, and Polygon starting July 12. The SEC has classified these cryptocurrencies as securities in multiple lawsuits filed last week.
The agency also sued Binance for its alleged “blatant disregard of the federal securities laws,” issuing 13 charges, including operating an unregistered exchange. According to the SEC, Binance CEO Changpeng Zhao was aware of the platform’s violation of US laws when operating Binance.com.
While restricting its customers from trading specific cryptocurrencies, eToro US asserted its continuous support of cryptoassets, noting the importance of offering users access to a diversified range of asset classes, which includes stocks, ETFs, and options. The firm is committed to working with regulators globally to shape the crypto industry’s future and ensure access for ordinary investors.
The SEC’s actions against Binance were followed by a lawsuit against Coinbase, accusing the exchange of operating without registering as an exchange, broker, or clearing agency. With these regulatory crack-downs occurring, the question of whether eToro US will re-list XRP if it is not a security resurfaces.
The company acknowledged users’ concerns on the matter and is closely monitoring the regulatory environment for developments. Although eToro US cannot guarantee any specific outcomes, it promises to keep users informed of any changes.
At present, the SEC has accused Ripple of raising $1.3 billion through the sale of XRP and has sued CEO Brad Garlinghouse and co-founder Christian Larsen. A court decision determining if XRP is a security is expected soon.
These recent regulatory actions highlight the need for cryptocurrency platforms and users to be aware of the evolving regulatory landscape. While acknowledging the importance of offering diverse investment options, platforms like eToro US are taking measures to ensure compliance with securities regulations. As the crypto industry continues growing, the topic of integrating developing technologies with existing regulatory frameworks is inevitable.
Source: Cryptonews
