ALGO, MATIC face another blow as eToro halts sale

• The SEC classified several cryptocurrencies as securities in its lawsuits filed against Binance and Coinbase last week.
• Earlier, another platform, Robinhood, delisted such tokens as prices tumbled.

Retail trading platform eToro has stopped purchases of cryptocurrencies such as Algorand [ALGO], Decentraland [MANA], Dash [DASH], and Polygon [MATIC] for customers based in the United States.

The platform has taken the decision in the wake of these tokens being labelled as securities by the U.S. Securities and Exchange Commission (SEC).

On 12 June, eToro informed its users that the action had been taken “in light of the rapidly evolving regulatory landscape” in the U.S.

eToro has a framework in place which reviews the cryptoassets 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. (1/5)

— eToro US (@eToroUS) June 12, 2023

Customers can, however, continue to hold and sell existing positions in these coins. The statement read:

“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.”

The SEC has classified several crypto assets such as Cardano [ADA], Solana [SOL], MATIC, MANA, ALGO, and more as securities in its lawsuits against Binance and Coinbase last week.

We must note that eToro is rather cautious in its operations regarding evolving regulatory actions. In December 2020, it delisted Ripple [XRP] as well, following the SEC’s lawsuit against Ripple Labs.

Exchanges abandon tokens

Over the weekend, another trading platform, Robinhood, delisted ADA, MATIC and SOL. Since the SEC duly regulates the exchange, it most likely took the decision to comply with the latest regulatory developments.

ALGO has lost over 16% of its value since SEC’s enforcement action and was trading at $0.1164 at press time.

Source: TradingView

MANA, on the other hand, has lost over 33% since that day; the token was trading at $0.3499 at press time.

Source: TradingView

MATIC has lost over 27% of its value and was trading at $0.6507 at press time.

Source: TradingView

DASH’s price, having dropped by 30%, was trading at $29.40 at press time.

Source: TradingView

Though all the tokens seemed to be recovering at the time of writing, accurately gauging their trajectory is difficult, keeping in mind the regulatory landscape.