eToro Suspends Several Crypto Purchases in U.S Post SEC Ruling

• Robinhood had taken the same move in reaction to the SEC’s ruling.
• eToro has adopted similar measures in the past during Ripple and SEC lawsuit.

Algorand (ALGO), Decentraland (MANA), Polygon (MATIC), and Dash (DASH) purchases on the retail trading platform eToro have been temporarily disabled for customers located in the United States as a result of a recent lawsuit from the Securities and Exchange Commission (SEC) designating these tokens as securities.

A few days before, another cryptocurrency exchange, Robinhood, had taken the same move in reaction to the SEC’s ruling that Polygon (MATIC), together with Cardano (ADA), and Solana (SOL), are securities.

Announcing on Twitter on June 12 that it had reviewed its cryptocurrency listings in light of “recent developments” with the SEC and “the rapidly evolving regulatory landscape,” eToro US said it has done so. Holders and traders on eToro in the United States may continue to sell the assets despite the fact that they will be technically delisted as of 6:00 am Eastern Time on July 12.

The exchange announced:

“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, 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.“

Similar Actions in the Past

Members of the community have questioned why eToro US hasn’t highlighted the current case, which ruled that SOL is security. However, an eToro official has said categorically that SOL cannot be traded on eToro from the United States.

The business has chosen to err on the side of caution after the SEC asserted in action against Binance and Coinbase that various assets, including ADA, SOL, MATIC, MANA, and ALGO, are securities.

eToro has adopted similar measures in the past because of the SEC’s proclivity for litigation. The SEC filed suit against Ripple Labs in 2020, and by December of that year, the business had delisted Ripple (XRP).

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