SEC Restricts Crypto Offerings On eToro US
eToro agreed to pay a $1.5 million fine to the SEC for operating as an unregistered broker in the US. Following this settlement, the broker will now limit cryptocurrency trading services to Bitcoin, Bitcoin Cash and Ethereum.
Forex broker eToro made headlines by agreeing to pay a $1.5 million fine to the US Securities and Exchange Commission (SEC). The settlement comes after the SEC accused the broker of operating in the US as an unregistered broker and clearing house, facilitating the trading of certain crypto assets classified as securities.
As part of the agreement, forex broker eToro will now restrict US customers' access to cryptocurrency trading, allowing them to trade only Bitcoin, Bitcoin Cash and Ethereum. Other crypto assets will be removed from the platform, and customers will have 180 days to sell remaining holdings of those assets.
This decision is the result of an SEC investigation, which found that since at least 2020, the social trading broker has been offering to US users the ability to trade crypto assets that are considered securities without complying with federal registration requirements.
Gurbir Grewal, Director of the SEC Enforcement Division, commented, “By delisting tokens as investment contracts, eToro has taken steps to align with regulatory standards. This move not only strengthens investor protection but also sets an example for other crypto brokers.”
eToro's compliance with SEC regulations marks a significant change in the way the broker operates in the US going forward, affecting its multi-asset offerings.
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