Following Robinhood, eToro Stops ALGO, DASH, MANA, and MATIC Purchases for US Cu...

Following Robinhood, eToro Stops ALGO, DASH, MANA, and MATIC Purchases for US Customers

eToro, a retail trading platform, reviewed its crypto assets framework and halted purchasing Algorand (ALGO), Dash (DASH), Decentraland (MANA), and Polygon (MATIC) for US customers. The platform took this move responding to the Securities and Exchange Commission(SEC) lawsuits, where these tokens have been claimed as securities. The retail trading company would not want to involve in any potential regulatory non-compliance and keep supporting the crypto community legally.

eToro took this plunge after Robinhood, its competitor, suspended the support for MATIC, Solana (SOL), and Cardano (ADA). All these cryptocurrencies have been deemed as securities by SEC in its filings. Their announcement stated,

“From 6:00 AM 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.”

What Does the Platform Have to Say About Their Decision?

eToro stated that its framework allows for regularly inspecting the “evolving regulatory landscape.” Therefore, they have made modifications to their crypto offerings for US customers.

Although they’d like to offer a variety of assets to their customers, they need to stay compliant with the regulations. That is why such decisions of halting crypto assets have arisen.

They stated in their announcement,

“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.”

What do crypto community members have to say?

Many crypto community members have questioned why eToro US hasn’t taken action against SOL, another cryptocurrency mentioned by the SEC in its lawsuit. In response, an eToro spokesperson said that SOL isn’t an offering by eToro US.

Some members have also opposed the decision saying that all crypto platforms must stand together to combat SEC’s claims.

Has eToro done anything like this before?

eToro had halted access to specific assets when SEC earlier filed lawsuits against them. For instance, in December 2020, eToro suspended support for Ripple XRP after SEC’s case against Ripple Labs.

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