Summary:
- The investment provider will delist four cryptocurrencies for U.S. customers in response to the SEC’s lawsuits against Binance and Coinbase.
- Customers will not have the option to open new ALGO, MANA, DASH, and MATIC positions from July 12.
- Users can still hold and sell their positions until further notice.
- eToro cited “recent developments” as the reason following securities claims in filing against the two major cryptocurrency exchanges.
The U.S. Securities and Exchange Commission enforcement actions against crypto exchanges Binance and Coinbase continue to reverberate throughout the industry as investment platform eToro plans to delist four digital assets that are allegedly unregistered securities.
eToro is a cryptocurrency exchange and an online brokerage platform with a limited range of equities and exchange-traded funds (ETFs) that allows users to trade 30+ cryptocurrencies.
eToro And Robinhood Move Quick After SEC Lawsuits
On Monday, eToro told users that it will delist four cryptocurrencies – Algorand’s ALGO, Decentraland’s MANA, Dash (DASH), and Polygon (MATIC). The change in eToro’s crypto offering will only affect U.S. customers and will take effect from July 12.
eToro will allow its U.S. customers to hold and sell their positions in these four tokens post-July 12 but users cannot open new positions, per Monday’s announcement. The platform cited “recent developments” as the reason following the SEC’s litigation against two major crypto exchanges – Binance and Coinbase.
The decision from eToro follows Robinhood’s move to delist three tokens also classified as securities – Solana’s SOL, Cardano’s ADA, and Polygon’s MATIC.
Altcoins In Hot Water
Prices across the crypto ecosystem slumped last week after the SEC unleashed allegations against Binance and Coinbase claiming that both platforms broke U.S. laws. Binance CEO Changpeng Zhao was also included in the watchdog’s lawsuit for supposedly commingling funds into a private entity identified as Merit Peak.
The altcoins listed by Gary Gensler’s watchdog boast a combined market cap of over $100 billion, creating further uncertainty about the future of these tokens in the U.S.
Notably, crypto proponents are pushing back against the commission’s claims and insisting that the regulator has failed in its duty to provide clear guidance for the nascent industry.