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Popular stock trading platform eToro is ceasing trading for nearly all crypto assets after reaching a settlement with the United States Securities and Exchange Commission.
EToro was charged with operating an unregistered brokerage and clearing agency related to its crypto trading platform.
The trading platform has agreed to pay $1.5 million to settle the charges related to its unregistered brokerage and clearing agency operations, the SEC <a data-ct-non-breakable="null" href="https://www.sec.gov/newsroom/press-releases/2024-125#:~:text=The%20Securities%20and%20Exchange%20Commission,certain%20crypto%20assets%20as%20securities" rel="nofollow noopener" target="_blank" text="null" title="https://www.sec.gov/newsroom/press-releases/2024-125#:~:text=The%20Securities%20and%20Exchange%20Commission,certain%20crypto%20assets%20as%20securities">announced</a> on Sept. 12.
As part of the settlement, eToro has agreed to “make only a limited set of crypto assets available for trading” in the US and to cease violating applicable federal securities laws.
In line with the settlement, eToro’s US customers will only be able to trade Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>), Bitcoin Cash (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-cash-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/bitcoin-cash-price-index">BCH</a>) and Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="" target="_self" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>) tokens, allowing customers to sell their other crypto assets for up to 180 days starting Sept. 12.
This isn’t the first regulatory issue for the trading platform. At the beginning of April, the Philippines SEC <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/philippines-sec-accuses-etoro-offering-unregistered-securities" rel="" target="_self" text="null" title="https://cointelegraph.com/news/philippines-sec-accuses-etoro-offering-unregistered-securities">accused eToro of offering unregistered securities</a> in the country.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-etfs-major-target-north-korean-hackers-cyvers" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-etfs-major-target-north-korean-hackers-cyvers">Bitcoin ETFs are next major target for North Korean hackers — Cyvers</a>
<h2 id="etoro-has-operated-as-a-broker-and-clearing-agency-since-at-least-2020-sec">eToro has operated as a broker and clearing agency since at least 2020: SEC</h2>
According to the SEC’s settlement, eToro has operated as a broker and clearing agency in the US since at least 2020.
The SEC alleged that eToro did not comply with the registration provisions of the federal securities laws despite offering crypto asset trading on the platform, which the SEC viewed as a securities offering.
The $1.5-million penalty reflects eToro’s “agreement to cease violating applicable federal securities laws,” according to Gurbir Grewal, director of the SEC’s division of enforcement:
<blockquote>
 “By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection but also offers a pathway for other crypto intermediaries.”
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/consensys-hashkey-50m-accelerator-launches-carv" rel="" target="_self" text="null" title="https://cointelegraph.com/news/consensys-hashkey-50m-accelerator-launches-carv">Consensys and Hashkey-backed $50M accelerator launches for CARV data layer</a>
<h2 id="sec-crypto-enforcement-up-over-3-000-since-2023">SEC crypto enforcement up over 3,000% since 2023</h2>
The US SEC had a record-breaking year for crypto enforcement, even before the eToro settlement.
As of Sept. 10, the SEC <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-crypto-monetary-enforcement-3000-percent-rise-in-2024" rel="" target="_self" text="null" title="https://cointelegraph.com/news/sec-crypto-monetary-enforcement-3000-percent-rise-in-2024">imposed nearly $4.7 billion of enforcement actions against crypto firms</a> and executives in 2024, an over-3,000% jump from 2023.
The SEC’s record-setting year was mostly boosted by its <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/terraform-labs-shut-down-4-5-b-sec-settlement-law-decoded-june-10-17" rel="" target="_self" text="null" title="https://cointelegraph.com/news/terraform-labs-shut-down-4-5-b-sec-settlement-law-decoded-june-10-17">massive $4.47-billion settlement</a> with Terraform Labs and its <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/terraform-labs-bitcoin-do-kwon-extradition-montenegro" rel="" target="_self" text="null" title="https://cointelegraph.com/news/terraform-labs-bitcoin-do-kwon-extradition-montenegro">former CEO, Do Kwon</a>, in June — its “largest enforcement action to date,” <a data-ct-non-breakable="null" href="https://socialcapitalmarkets.net/crypto-trading/crypto-sec-fines-penalties/" rel="nofollow noopener" target="_blank" text="null" title="https://socialcapitalmarkets.net/crypto-trading/crypto-sec-fines-penalties/">according</a> to a Sept. 9 report from Social Capital Markets.
 
<figure>
 <img alt="eToro US to cease nearly all crypto trading following SEC settlement" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e668-db45-76e5-bc84-51259bef3a06">
 <figcaption style="text-align: center;">
 The total monetary enforcement amount won by the SEC in 2024 eclipses the combined total amount between 2013 and 2023. Source: Social Capital Markets
 </figcaption>
</figure>
The regulator’s 11 enforcement actions in 2024 netted a 3,018% increase from its $150.3 million worth of fines in 2023 despite <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-enforcement-actions-gary-gensler" rel="" target="_self" text="null" title="https://cointelegraph.com/news/sec-enforcement-actions-gary-gensler">taking 19 fewer actions against crypto firms</a>.
This year’s hike in fines suggests the SEC has <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-sec-crypto-exchange-proposal-challenge" rel="" target="_self" text="null" title="https://cointelegraph.com/news/coinbase-sec-crypto-exchange-proposal-challenge">made a strategic shift</a> toward <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/us-sec-crypto-exchange-coinbase-complaints-appeals-court" rel="" target="_self" text="null" title="https://cointelegraph.com/news/us-sec-crypto-exchange-coinbase-complaints-appeals-court">targeting more influential cases</a>.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/simple-change-save-ethereum-roadmap-to-hell/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/simple-change-save-ethereum-roadmap-to-hell/">Proposed change could save Ethereum from L2 ‘roadmap to hell’</a>

eToro US to cease nearly all crypto trading following SEC settlement

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