eToro Crypto USA Settles with SEC: Restricts Token Trading

Key Takeaways
  • eToro Crypto USA settles with the SEC, paying a $1.5M penalty and restricting crypto trading options for U.S. customers to comply with regulations.
  • eToro Crypto USA will only allow trading of Bitcoin, Bitcoin Cash, and Ethereum for its U.S. users.
  • eToro Crypto US customers have 180 days to sell all non-supported tokens as part of the platform’s compliance with SEC regulations.
13-09-2024 By: Akansha Sahu
eToro Crypto USA Set

eToro Crypto USA Settles with SEC, Restricts Token Trading: Pays $1.5M


On September 12, retail trading platform eToro announced it would stop offering nearly all cryptocurrencies to its U.S. customers as part of a settlement with the U.S. Securities and Exchange Commission (SEC). This decision follows a $1.5 million penalty eToro agreed to pay for operating as an unregistered broker and clearing agency related to its cryptocurrency offerings. The SEC alleged that eToro had allowed U.S. customers to trade crypto assets considered securities since 2020 without complying with federal registration requirements.

eToro Crypto: Limited Trading for U.S. Users

Going forward, eToro’s U.S. users will only be able to trade three cryptocurrencies: Bitcoin, Bitcoin Cash, and Ethereum. All other tokens will be phased out, with customers given 180 days to sell their holdings. This move is intended to bring eToro into compliance with U.S. regulations and is part of the platform’s broader effort to meet SEC standards.

Yoni Assia, eToro’s co-founder and CEO, stated that the settlement allows the company to focus on its diversified U.S. business while remaining a pioneer in both crypto and regulated securities. Assia emphasized that compliance with global regulations is essential for eToro's continued innovation and growth.

eToro Crypto, SEC’s Regulatory Push on Cryptocurrencies

The SEC has maintained that most cryptocurrency tokens are securities and should adhere to its registration requirements. Gurbir Grewal, the SEC’s enforcement division director, praised eToro for its decision to comply with the regulatory framework, highlighting the importance of investor protection. He also noted that this settlement could serve as a model for other crypto platforms seeking to align with U.S. regulations.

SEC Disputes

The SEC remains in legal disputes with several major crypto exchange platforms, including Coinbase, Binance, and Kraken, all of which challenge the notion that crypto assets should be treated as securities. Despite these legal challenges, eToro’s move to comply with the SEC’s rules marks a significant step in the evolving regulatory landscape for cryptocurrencies in the U.S.

Also Read: Telegram Airdrop Listing Dates: Coin To Be Listed On Binance



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