- eToro limits its support for certain SEC-classified security tokens, excluding XRP and others.
- Users in the U S will no longer be able to initiate new positions in Algorand, Decentraland, Dash, and Polygon.
The consequences of the SEC’s actions against Coinbase and Binance exchanges have a broader effect than initially expected. This is evident in eToro, a social trading platform that favors cryptocurrencies. It has now decided to limit its support for certain tokens classified as securities by the SEC but with an exception for XRP and other tokens.
According to eToro’s announcement, starting from July 12, 2023, 6:00 a.m. ET, users located in the United States will no longer be able to initiate new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). However, U.S. customers can still hold and sell existing positions in these assets. This change will not impact non-U.S. customers using the platform.
From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins. (2/5)
— eToro US (@eToroUS) June 12, 2023
Although eToro did not explicitly mention the influence of the securities regulator’s actions as the cause for the recent modifications in its cryptocurrency offerings, it highlighted the importance of the “rapidly evolving regulatory landscape.” By doing so, eToro aligns itself with other platforms like Robinhood as the industry grapples with the enforcement measures implemented by the SEC.
XRP continues to be among the most troubled cryptocurrencies due to its classification as an investment contract by the SEC, which occurred when the market regulator filed a lawsuit against Ripple Labs Inc., the coin’s associated payments partner, in December 2020.
Numerous trading platforms, including Coinbase, removed XRP from their listings during that period. However, the cryptocurrency has recently regained its position on prominent trading platforms such as eToro. Despite the ongoing lawsuit between the SEC and Ripple, XRP remains mostly unaffected by the current enforcement actions undertaken by the market regulator.
Regulatory Challenges and Recent Restrictions
eToro has previously imposed limitations on specific assets for its US customers, indicating a recurring occurrence. Following the SEC’s legal action against Ripple, eToro removed XRP from its platform. Subsequently, eToro also delisted Cardano (ADA) and Tron (TRX) a few months later, citing “business-related considerations in the ever-changing regulatory landscape.”
This announcement follows closely after Robinhood, another well-known trading firm, revealed its intention to cease offering support for Solana (SOL), Cardano (ADA), and Polygon (MATIC).
Moreover, Robinhood’s chief legal officer, Dan Gallagher, recently provided testimony before the House Agriculture Committee. He explained that the company tried registering with the SEC as a special-purpose broker for digital assets. However, despite undergoing a 16-month process, the agency rejected their application without a satisfactory explanation.
Similarly, just last week, Binance.US discontinued several trading pairs, such as ATOM/BTC and MANA/BTC. On the other hand, Coinbase CEO Brian Armstrong explicitly stated in an interview with Axios that his company has no intentions to remove any of the cryptocurrency tokens identified as securities in the SEC’s lawsuit. This list encompassed SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.
Following the public announcement of the lawsuit, Coinbase’s Chief Legal Officer, Paul Grewal, expressed that the company intends to continue conducting its business “as usual.”
