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EToro reached a $1.5 million settlement with the U.S. Securities and Exchange Commission over alleged violations of federal securities laws.
According to an greement <a href="https://www.sec.gov/newsroom/press-releases/2024-125" target="_blank" rel="noopener noreferrer nofollow">disclosed</a> by the SEC, eToro also agreed to cease nearly all cryptocurrency trading and transactions for U.S. customers. Moving forward, American users can only trade Bitcoin (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/bitcoin/">BTC</a>), Bitcoin Cash (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/bitcoin-cash/">BCH</a>), and Ethereum (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/ethereum/">ETH</a>) on the platform.&nbsp;
Following the order issued on Sept. 12, the trading venue has 187 days to offboard all other cryptocurrencies and liquidate existing assets. Customers will receive proceeds equal to their balance.
The SEC’s complaint claimed that eToro operated an unlicensed broker and clearing agency since at least 2020. Although the exchange reached a settlement with the SEC, it declined to admit or deny the SEC’s allegations. Gurbir S. Grewal, director of the SEC’s enforcement division, said eToro’s cooperation provides a pathway for other crypto intermediaries to comply with U.S. rules.
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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework… The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws as it continues its U.S. operations.
 Gurbi S. Grewal, director of the SEC’s enforcement division
</blockquote>
While the platform refrained from debating the security status of cryptocurrencies, the settlement may be used as a precedent in future cases. Separating BTC, BCH, and ETH from other cryptocurrencies suggests the SEC views most, if not all, other digital assets as securities.
EToro’s past decisions reinforce this view among some service providers. In 2020, when the SEC sued Ripple, eToro delisted (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/xrp/">XRP</a>) and three other cryptocurrencies in response. Still, the company’s crypto services proceeded in other markets. As reported, the firm <a rel="noopener noreferrer nofollow" href="https://crypto.news/etoro-to-provide-crypto-services-in-all-eu-countries/">bagged</a> a CySEC CASP approval to offer digital asset facilities in all EU countries.
Meanwhile, the SEC and other U.S. regulatory watchdogs continued a sweeping <a rel="noopener noreferrer nofollow" href="https://crypto.news/sec-crypto-fines-spiked-3018-in-one-year/">crackdown</a> across the burgeoning blockchain sector. SEC fines against crypto entities have exceeded $7.4 billion since 2013.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/ripple-hit-with-125m-fine-for-securities-violations-xrp-surges-18-post-ruling/"> Ripple hit with $125m fine for securities violations; XRP surges 18% post-ruling </a>

EToro to cease all crypto trading except BTC, BCH, ETH

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