- eToro will delist four tokens for US customers.
- The decision will take effect starting in July.
- The move is part of eToro’s response to the SEC’s crackdown on crypto.
The fallout from the Securities and Exchange Commission’s (SEC) regulatory crackdown is spreading. Following the lawsuits against Binance and Coinbase, US-based crypto exchanges like eToro US are taking steps to avoid the wrath of the SEC, delisting controversial tokens.
On Monday, June 12, eToro US announced that the platform would delist four crypto tokens, effective in July, due to regulatory challenges.
eToro to Delist ALGO, MANA, DASH, MATIC
The four tokens affected are Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC).
Starting July 12, traders will be unable to open new positions in these tokens. However, users can continue and hold or sell the tokens they already have.
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The company stated that the move is part of its efforts to comply with regulatory standards in the United States. The most likely reason for the delisting was the ongoing SEC lawsuit against Binance.
SEC’s Lawsuit Against Binance Prompts eToro US, Robinhood to Delist Tokens
On June 9, Robinhood announced that it would delist Solana (SOL), Cardano (ADA), and Polygon (MATIC). All three of these tokens appear in the SEC’s lawsuit against Binance.
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On June 5, 2023, the SEC charged Binance, the world’s largest crypto asset trading platform, and its founder, Changpeng Zhao, with a variety of securities law violations. The charges include operating unregistered exchanges, broker-dealers, and clearing agencies. Moreover, the SEC charged Binance with the unregistered offer and sale of securities, naming specific tokens in the lawsuit.
The lawsuit listed ten crypto assets as unregistered securities. It includes BNB, BUSD, Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS), and COTI (COTI).
On the Flipside
- Despite ongoing regulatory pressures, eToro US will continue to list XRP. Interestingly, the SEC did not list XRP as a security in its lawsuit against Binance.
- eToro also delisted Dash (DASH), which is not one of the cryptos directly named in the SEC lawsuit.Â
Why This Matters
The move by eToro US signals that US-based exchanges are concerned with an intensifying SEC crackdown.
Read more about how the SEC is putting pressure on exchanges:
SEC v. Binance Puts Screws on U.S. Exchanges to Delist ADA, SOL, MATIC
Read more about how the SEC crackdown is affecting Solana:
Solana’s SEC, FTX Troubles Spark Hard Fork Debate in Community
