eToro Suspends Polygon, Decentraland, Dash, and Algorand for US Customers
eToro trading platform confirmed in its Monday, June 12 statement string out four tokens that US customers can acquire starting July. The platform informed the US clients that it would halt Algorand, Decentraland, Polygon, and Dash from the list of tokens they could purchase.
The eToro decision portrays the regulatory double tap following the Securities and Exchange Commission (SEC) court filing that identified the four cryptos as securities.
eToro Issues July Deadline to Delist Four Coins
The decision to drop the four tokens echoes the decision reached by the Robinhood trading application to terminate support for three cryptos the SEC classified as unregistered securities when filing charges against Binance and Coinbase. As such, the Robinhood trading application issued a June 27 deadline to end support for Cardano, Solana, and Polygon.
eToro statement emphasized that the US customers will no longer open new positions for the four tokens. The stance illustrates the devotion of eToro to prioritize compliance with the pronouncement made by the US securities watchdog. The trading platform seeks to avoid battling the charges that SEC prefers on crypto exchanges, including Kraken, Bittrex, Binance, and Coinbase.
US Clients Have Month Window to Exhaust Trading Delisted Tokens
eToro seeks to avert confronting the regulator in the market-rattling lawsuits that recently led to mass outflow from the centralized crypto exchanges. Nonetheless, an eToro spokesperson indicated that eToro customers would continue holding and selling their existing positions in the four tokens.
eToro statement illustrates that the changes are scheduled for enforcement on July 12. It added that the month-long window would provide customers sufficient time to exhaust trading the tokens struck out from the platform.
The eToro statement indirectly referred to the lawsuits that the SEC recently initiated against Coinbase and Binance. Although noncommittal, it is evident that the eToro decision drew attention to the regulatory revelations.
The spokesperson illustrated that eToro operates a framework of reviewing cryptos offered relative to the rapid evolution of the regulatory landscape. The executive confirmed that recent developments are guiding eToro to enforce changes to their offering for US-based clients.
Non-US Clients to Assess Diverse Cryptos
The Israeli firm clarified that its services in over 100 international markets would remain uninterrupted as the changes only affected the US customers. A subsequent update by eToro on Twitter restated its commitment to crypto and provision of diversified asset classes. And eToro reiterated its overall commitment to crypto on Twitter. The June 12 tweet demonstrated that it would continue offering stocks, options, and exchange-traded funds (ETFs).
The announcement by eToro replicates the disclosure made by Robinhood on June 9 to terminate SOLANA, MATIC, and ADA. The company attributes the change to eliminating the uncertainty cloud that befell tokens.
eToro and Robinhood Reignite the Delisting of XRP
A review of the eToro structure shows similarity with Robinhood’s journey since it expanded its scope to offer crypto as an experienced trading platform for stocks. Besides, the two platforms unveiled Bitcoin and Ethereum offerings to US clients in 2018.
The crypto community tasked the eToro spokesperson with excluding SOL from the list of suspended tokens issued by the firm. The members indicated that SOL is among the tokens labeled as security in the lawsuits initiated against Binance and Coinbase. The eToro’s executive indicated that SOL is not part of the US eToro offering.
The provision of a month window to delist the four tokens marks the second time when eToro US is halting access to a few crypto assets following SEC-led litigation. In December 2020, the firm delisted XRP following the lawsuit initiated by SEC against Ripple Labs.
The move by eToro and Robinhood shows a feverish response emerging from the proximity to cryptos as SEC launches enforcement actions against noncompliant firms dealing in digital assets.
Like Robinhood, eToro is committed to complying with the regulators in shaping the crypto industry and advancing access to diverse digital assets to investors. The stance is evident in the assurance to maintain a diversified range of assets to the eToro community.
Editorial credit: Ralf Liebhold / Shutterstock.com
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