In short: Social trading platform eToro has barred US customers from buying four cryptocurrencies deemed securities by the United States Securities and Exchange Commission (SEC) in lawsuits against Coinbase and Binance. Starting July 12, customers will be unable to purchase Algorand, Decentraland, Dash and Polygon, but will still be able to hold and sell existing positions. The platform stressed the "rapidly evolving regulatory landscape" for the move, which follows similar action taken by Robinhood in recent weeks. Our quick analysis: Financial trading platform eToro has announced new guidelines that will prevent US customers from purchasing four crypto assets dubbed securities by the United States Securities and Exchange Commission (SEC). The decision comes after recent lawsuits against Coinbase and Binance, with eToro stating that it wants to keep up with the “rapidly evolving regulatory landscape.” Effective from July 12th, eToro’s US customers will no longer be permitted to buy Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC), although current holders can still sell their existing positions in these coins. While eToro has not cited the SEC’s actions directly, the update follows similar moves earlier this year after the regulatory body’s lawsuit against Ripple. In that instance, eToro delisted XRP, while eventually delisting Cardano (ADA) and Tron (TRX) over “business-related considerations” in a changing regulatory environment. Robinhood has also recently announced plans to withdraw support for Solana (SOL), Cardano (ADA), and Polygon (MATIC). The firm’s chief legal officer Dan Gallagher has expressed his frustration at a lack of clarity from the SEC, which appears to have hindered Robinhood’s own attempts to register as a special-purpose broker for digital assets. As firms bow to the SEC’s scrutiny, it remains to be seen what impact these restrictions will have on the broader crypto industry, or how the regulatory environment will continue to evolve in the coming months. Image provided by Unsplash Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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