2 months ago
20 ARTICLE AD
The trading platform has agreed to limit US crypto offerings and pay $1.5M fine in settlement with the SEC.
Key Takeaways
eToro will continue allowing US trades of Bitcoin, Bitcoin Cash, and Ethereum following the SEC settlement. The SEC's recent actions include settlements and lawsuits with major crypto exchanges like Binance and Coinbase. <?xml encoding="UTF-8"?>The SEC has reached a settlement with trading platform eToro, requiring the company to restrict crypto trading for US customers to only Bitcoin, Ethereum, as well as Bitcoin Cash.
Under the agreement announced Thursday, eToro will pay a $1.5 million fine to settle allegations it operated as an unregistered broker and clearing agency. The Tel Aviv-based company’s US branch will give customers 180 days to sell any crypto assets not included in the three allowed cryptocurrencies.
The settlement significantly narrows eToro’s crypto offerings for US users, as the platform currently lists over 100 different tokens including popular coins like XRP, Solana, and Polygon. SEC enforcement director Gurbir S. Grewal stated that by removing tokens offered as investment contracts, “eToro has chosen to come into compliance and operate within our established regulatory framework.”
eToro CEO Yoni Assia downplayed the impact, saying the settlement would minimally affect the company’s business and that non-US users can still access its full crypto trading options. He expressed optimism about future US crypto regulations, noting, “We now have a clear regulatory framework for cryptoassets in our home markets of the UK and Europe and we believe we will see similar in the US in the near future.”
The SEC’s crypto crackdowns continue
The eToro settlement continues the SEC’s broader crackdown on crypto exchanges over the past year. The agency has filed lawsuits against major platforms Binance, Coinbase, and Kraken, while also notifying Robinhood of a potential enforcement action related to its crypto business. This regulatory pressure extends beyond exchanges to other crypto projects like Tron, OpenSea, and Consensys, among others.
Notably, the settlement allows eToro to continue offering Ethereum trading to US customers, despite earlier indications from the SEC that it may consider Ether an unregistered security. This aligns with the agency’s recent approval of spot Ether exchange-traded funds, signaling a shift in its stance on the second-largest cryptocurrency by market value.
Disclaimer
