Crypto trading platform eToro reached a settlement with the U.S. Securities and Exchange Commission (SEC), significantly reducing its crypto offerings for U.S. customers.
SEC Settlement
As part of the agreement, eToro will now only offer trading in three cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH). This decision comes after the SEC accused eToro of operating as an unregistered broker and clearing agency, facilitating the trading of crypto assets that the SEC considers securities. eToro has also agreed to pay a $1.5 million penalty as part of the settlement.
Deadline for U.S. Users
Under the terms of the SEC settlement, eToro will offboard all crypto assets except BTC, ETH, and BCH within the next 187 days. U.S. users will have 180 days to sell or liquidate their holdings in other cryptocurrencies before their access to these assets is restricted. Any remaining assets after this window will be liquidated, and users will receive proceeds equivalent to their account balances.
SEC’s Position on Cryptocurrencies
The SEC's actions against eToro are part of a larger campaign to regulate the crypto space. The settlement suggests the SEC sees most cryptocurrencies beyond Bitcoin, Ethereum, and Bitcoin Cash as securities. This follows a similar pattern to earlier actions taken by the SEC against Ripple and other crypto projects. In 2020, following the SEC's lawsuit against Ripple, eToro delisted XRP and three other cryptocurrencies. eToro’s settlement with the SEC may prompt other crypto platforms to rethink their U.S. operations.
While eToro has decided to limit its crypto offerings in the U.S., it continues to provide a range of services in international markets. For example, eToro recently received approval from the Cyprus Securities and Exchange Commission (CySEC) to offer digital asset services across all European Union member states.
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