Retail trading platform eToro has halted purchases of Algorand (ALGO), Decentraland (MANA), Polygon (MATIC) and Dash (DASH) for clients in the US in response to their classification as a security in recent SEC lawsuits.
The move comes just days after rival Robinhood also stopped supporting MATIC and two other securities considered by the SEC — Cardano (ADA), and Solana (SOL).
On June 12 on Twitter, eToro US indicated that it has reviewed its listings for cryptocurrencies “in light of the rapidly evolving regulatory landscape” and “recent developments” with the Securities and Exchange Commission.
eToro has a framework in place that reviews the crypto assets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering to US customers. (1/5)
– eToroUS (eToroUS) June 12, 2023
The assets were officially delisted as of 6:00 AM ET on July 12, however, eToro US users will still be able to hold and sell these assets.
“We remain supportive of crypto assets and believe in the importance of giving our users access to a variety of asset classes, which includes stocks, ETFs, and options. We are committed to working closely with regulators around the world to shape the future of the cryptocurrency industry and support access for the average investor,” the company stated.
The company has essentially chosen to err on the side of caution, since the SEC has now confirmed in lawsuits against Binance and Coinbase that major assets such as ADA, SOL, MATIC, MANA, ALGO, and many others are securities.
Related: BREAKING: US lawmakers put in place the “SEC Stabilization Act” to fire Gary Gensler
Notably, eToro has not said anything about Solana or Cardano, which have also been deemed securities in recent lawsuits.
interesting
eToro is removing Polygon and Algorand, not Solana pic.twitter.com/ZjigTmLmO0
– lightspeed merchandise | helius.dev (@0xMert_) June 12, 2023
This isn’t the first time eToro US has moved to shut down access to certain assets in response to the litigation-friendly SEC. In December 2020, the company also delisted Ripple (XRP) following the lawsuit filed by the SEC against Ripple Labs.
Cointelegraph has reached out to eToro US about halting some assets and choosing not to halt others, and will update the story if the company responds.
magazine: Crypto Regulation – Does SEC Chairman Gary Gensler Have the Final Word?
