Retail trading platform eToro announced it will delist most cryptocurrencies for U.S. customers as part of a settlement with the Securities and Exchange Commission (SEC).
Fine and Settlement Terms
The U.S. Securities and Exchange Commission (SEC) announced that eToro has agreed to pay a $1.5 million fine for operating an unregistered broker and clearing agency. According to the SEC, the company facilitated the trading of certain crypto assets deemed as securities since 2020.
eToro's Response
As part of the settlement, eToro will offer only a limited set of crypto assets in the U.S., including Bitcoin, Bitcoin Cash, and Ether. eToro informed its U.S. customers that they have 180 days to sell any holdings except the aforementioned assets. According to Yoni Assia, eToro's co-founder and CEO, 'the settlement terms will have minimal impact on our global business. Outside the U.S., eToro users will continue to have access to over 100 crypto assets.'
Ongoing Legal Disputes
This move highlights the ongoing legal battles between the SEC and crypto companies. The SEC claims that most cryptocurrency tokens are securities subject to its oversight. Many crypto companies disagree, accusing the regulator of excessive control. It's also worth noting that the SEC is engaged in legal disputes with several crypto exchanges, such as Coinbase, Binance, and Kraken, which argue that crypto assets are not securities.
eToro's delisting of cryptocurrencies for U.S. customers and subsequent fine are part of the broader issue of legal uncertainty in the cryptocurrency space. Future court decisions are expected to shape the regulatory framework for crypto assets.
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