The Big Quit: Crypto Firms Leaving The US

A wave of quitting is sweeping the U.S. following the heightened scrutiny that targets major crypto exchanges.

Multi-asset investment platform eToro announced on Monday that it would no longer support many cryptocurrencies, including Algorand (ALGO), Decentraland (MANA), Polygon (MATIC) và Dash (DASH) in the U.S.

eToro Disables $ALGO, $MANA, 4MATIC and $DASH

This move comes amid the ongoing crypto crackdown in the country. eToro will join other companies, specifically Robinhood, to disable some coins from its services. Robinhood previously announced its halting of Polygon (MATIC), Cardano (ADA), and Solana (SOL).

The shutdown notice was sent to the platform’s customers through an email. Those cryptocurrencies, according to previous reports, are among several other cryptocurrencies that are classified as security by the U.S. Security and Exchange Commission (SEC).

The halting is scheduled for July 12 but the holders of those coins are able to hold and sell them.

Explaining its decision, eToro said in a Twitter thread that the firm was seeking ways to cope with recent developments in the U.S. regulatory landscape, indicating the SEC’s recent lawsuits against two crypto giants, Binance and Coinbase.

In two separate filings, SEC accused the two exchanges of violating security regulations, in addition to other allegations.

It’s not the first time eToro has halted support for the cryptocurrencies associated with the SEC. In 2020, eToro delisted Ripple (XRP) from its services after the regulatory body sued Ripple Labs.

Over the last seven days, $MATIC dropped by 23%, $ADA plunged by 21.36%, $ALGO lost 16.5% of its value, and $MANA and $DASH were down by 24.8% and 26.4%, respectively, according to CoinMarketCap.

The major highlight of the recent events, Binance Coin (BNB), slightly recovered after its price dropped drastically during the previous week. $BNB is currently up by 2.28% in the last 24 hours, but given the unpredictability of the coming events, the overall market remains highly volatile.

Crypto Firms Set to Depart

Despite their efforts to comply with regulations, Coinbase and Binance face a tough battle against Gary Gensler, the SEC’s Chairman, who has long targeted these entities. As a result, numerous cryptocurrencies and major exchanges are being dealt severe blows, leading to a wave of departures from the U.S.

Moving operations offshore is happening, with one company following another. Just recently, Gemini, the crypto exchange founded by Tyler and Cameron Winklevoss, revealed its intention to seek a license to operate in the Emirates.

This decision was supported by data indicating that the Emirates had surpassed the United States regarding crypto adoption. However, a spokesperson from Gemini declined to comment on this matter.

In March, Bittrex made headlines by announcing the suspension of its operations in the United States, citing concerns over the “current U.S. regulatory and economic environment.”

Shortly after, the crypto exchange faced a lawsuit from the SEC, and its U.S. branch filed for bankruptcy. Nevertheless, the company’s global exchange remains operational overseas.

Gensler is facing growing criticism from crypto insiders. Many criticize that Gensler has overreached his authority; instead of bringing transparency to the sector, the SEC is attacking it and hindering industry growth.

Some policymakers also voiced opposition to the SEC’s moves. Representatives from Republican Party, Warren Davidson, and Tom Emmer, recently filed “the SEC Stabilization Act” to “restructure the @SECGov and #FireGaryGensler.”

Warren stated, “U.S. capital markets must be protected from a tyrannical Chairman, including the current one. It’s time for real reform and to fire @GaryGensler as Chair of the SEC.”

Binance’s CEO, CZ, expressed his support for this move through a retweet. Tomorrow, Binance.US and the SEC will be at the hearing on temporary restraining and asset-freezing orders.

The US has officially decided to leave crypto out in the cold. Some other market will clearly benefit from this move.