In accordance with the SEC’s settlement, the trading platform has consented to restrict its US crypto offerings and pay a $1.5M fine.
The Securities and Exchange Commission (SEC) has reached a settlement with the trading platform eToro, mandating that the company limit crypto trading for US customers to Bitcoin, Ethereum, and Bitcoin Cash.
eToro will pay a $1.5 million fine to resolve allegations that it operated as an unregistered broker and clearing agency, as per the agreement announced on Thursday. The US branch of the Tel Aviv-based company will provide consumers with 180 days to sell any crypto assets that are not within the three permitted cryptocurrencies.
The settlement will considerably reduce eToro’s crypto offerings for US users, as the platform presently lists over 100 tokens, including popular assets such as XRP, Solana, and Polygon. “eToro has chosen to come into compliance and operate within our established regulatory framework” by withdrawing tokens offered as investment contracts, according to Gurbir S. Grewal, SEC enforcement director.
eToro CEO Yoni Assia downplayed the impact, asserting that the resolution would have a minimal impact on the company’s business and that non-US users can continue to access the full range of crypto trading options. He expressed optimism regarding the future of US crypto regulations, stating, “We currently have a well-defined regulatory framework for cryptoassets in our native markets of the UK and Europe, and we are confident that a similar framework will be implemented in the US in the near future.”
Continuing the SEC’s comprehensive assault on cryptocurrency exchanges that has been underway for the past year, the eToro settlement is evidence of this. In addition to notifying Robinhood of a prospective enforcement action relevant to its crypto business, the agency has filed lawsuits against significant platforms Binance, Coinbase, and Kraken. Tron, OpenSea, and Consensys are among the crypto projects that are subject to this regulatory pressure, which extends beyond exchanges.
It is important to note that the settlement permits eToro to continue providing Ethereum trading services to US consumers, despite the SEC’s previous statements that it may regard Ether as an unregistered security. This is consistent with the most recent approval of spot Ether exchange-traded funds by the agency, which indicates a change in its position on the second-largest cryptocurrency by market value.
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