EToro curtails new orders of SEC-deemed crypto securities for US customers

The tokens targeted include algorand (ALGO), decentraland (MANA), dash (DASH) and polygon (MATIC)

June 12, 2023 06:25 pm

H.Ik.T/Shutterstock modified by Blockworks

The brokerage eToro is cutting off US customers from four crypto tokens newly deemed securities by the SEC.

The market maker on Monday cited a “rapidly evolving regulatory landscape” in explaining the move. The four cryptocurrencies set to be removed from eToro’s platform are algorand (ALGO), decentraland (MANA), polygon (MATIC) and dash (DASH).

The four were cited in varying capacities in the SEC’s lawsuits against Binance and Coinbase last week.

Effective 6 am ET on July 12, US customers will not be able to purchase any additional amount of the four tokens. Users are set to retain the ability to “hold and sell existing positions in these coins,” the company tweeted.

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The trading app — which partnered with Twitter in April to embed its real time data for crypto tokens — added it remains supportive of digital assets, but wants to work with regulators.

“We are committed to working closely with regulators around the world to shape the future of the crypto industry,” the company tweeted.

The brokerage removed support for cardano (ADA) for US customers back in December 2021 because of “business-related considerations.”

The most recent delistings from eToro come as Robinhood has been spooked into removing ADA, MATIC and solana (SOL) from its platform. The SEC has claimed each met the benchmarks for a security.

Binance.US also discontinued several trading pairs last week, including ATOM/BTC and MANA/BTC.

Coinbase CEO Brian Armstrong told Axios last week that his company doesn’t plan to delist any of the crypto tokens named as securities by the SEC in its suit. They included SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.

Coinbase Chief Legal Officer Paul Grewal said immediately after the lawsuit was made public that Coinbase plans to operate its business “as usual.”

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