Trading Giant eToro Halts Purchases of Polygon (MATIC), Algorand (ALGO) and Two Other Altcoins Amid SEC Crackdown

Popular social trading platform eToro is halting purchases of layer-2 scaling solution Polygon (MATIC), smart contract platform Algorand (ALGO) and two other altcoins after a US regulator labeled them as securities.

In a new announcement, eToro says that US customers will no longer have the ability to purchase ALGO, MATIC as well as gaming metaverse Decentraland (MANA) and privacy-focused protocol Dash (DASH) due to the latest US crackdown on digital assets.

“eToro has a framework in place which reviews the crypto assets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers.”

The decision by eToro coincides with the U.S. Securities and Exchange Commission (SEC) suing Binance and Coinbase, the top two crypto exchanges in the world, for allegedly violating securities laws.

In the lawsuits filed last week, the SEC labels several altcoins securities, including the four eToro is banning for purchase. The ban goes into effect on July 12. US customers will still have the ability to hold and sell the four assets.

“From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins.

We remain a supporter of crypto assets and believe in the importance of offering our users access to a diversified range of asset classes, which includes stocks, exchange-traded funds (ETFs), and options.

We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the ordinary investor.

Please note that these changes only apply to US customers. If you have any questions please do not hesitate to contact our customer service team.”

Other crypto trading platforms have made similar moves.

Trading giant Robinhood is delisting Solana (SOL), Cardano (ADA), and Polygon starting June 27 as they’ve been labeled as securities by the SEC.

Many altcoins collapsed in price last week, including large-cap tokens ADA, MATIC and SOL, due to the regulatory body’s lawsuits.

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