eToro, a popular social trading platform, has decided to delist four cryptocurrency tokens for its U.S. customers, with the delisting set to take effect on July 12. The affected tokens include Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). This move comes in response to ongoing lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against cryptocurrency exchanges Coinbase and Binance.

The SEC's lawsuits allege that specific tokens offered on these exchanges qualify as unregistered securities, which violates federal investment laws. eToro's choice to remove these tokens indicates a growing trend among crypto-friendly brokers in the United States who take the SEC's regulatory actions seriously.

eToro is also considering implementing changes to ensure compliance with evolving regulatory requirements within the digital asset space. The SEC's recent crackdown on the cryptocurrency industry has raised concerns among investors about the sector's future.

Removing these tokens from the Israeli broker's offerings will impact their market prices. However, it is worth noting that eToro's customers can still maintain and sell any existing positions they hold in these tokens.

eToro is not the only cryptocurrency broker to have made adjustments to align with the SEC's regulations. In April, Robinhood, another popular trading platform, removed three crypto tokens, namely Cardano (ADA), Solana (SOL), and Polygon (MATIC), from its platform. Robinhood stated it was "actively reviewing" its cryptocurrency listings due to the SEC's enforcement actions against Binance and Coinbase.

See Also: eToro Review