Bitcoin Cash

Bitcoin

Crypto trading platform eToro reached a settlement with the U.S. Securities and Exchange Commission (SEC), significantly reducing its crypto offerings for U.S. customers, according to a&nbsp;<a style="text-decoration:none" href="https://www.sec.gov/newsroom/press-releases/2024-125#:~:text=The%20Securities%20and%20Exchange%20Commission,certain%20crypto%20assets%20as%20securities">Sept. 12 US SEC announcement</a>.
As part of the agreement, eToro will now only offer trading in three cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH). This decision comes after the SEC accused eToro of operating as an unregistered broker and clearing agency, facilitating the trading of crypto assets that the SEC considers securities.
&nbsp;
eToro has also agreed to pay a $1.5 million penalty as part of the settlement, signaling its commitment to resolving the SEC’s claims without admitting or denying the allegations
&nbsp;
Yoni Assia, co-founder and CEO of eToro, spoke about the company’s dedication to regulatory compliance.&nbsp;
&nbsp;
In a&nbsp;<a style="text-decoration:none" href="https://www.reuters.com/technology/etoro-shut-down-nearly-all-crypto-trading-settlement-with-us-sec-2024-09-12/">statement</a> to Reuters, Assia noted:
<blockquote>
 “This settlement allows us to focus on providing innovative and relevant products across our diversified U.S. business. We are committed to working closely with regulators around the world to ensure our services are compliant and secure for our users.”
</blockquote>
<h2 dir="ltr" id="span-span-a-180-day-deadline-for-u-s-users-span-span">A 180-Day Deadline for U.S. Users</h2>
Under the terms of the SEC settlement, eToro will offboard all crypto assets except BTC, ETH, and BCH within the next 187 days. U.S. users will have 180 days to sell or liquidate their holdings in other cryptocurrencies before their access to these assets is restricted.&nbsp;
&nbsp;
Any remaining assets after this window will be liquidated, and users will receive proceeds equivalent to their account balances.
&nbsp;
While eToro has decided to limit its crypto offerings in the U.S., it continues to provide a range of services in international markets. For example, eToro recently received approval from the Cyprus Securities and Exchange Commission (CySEC) to offer digital asset services across all European Union member states.&nbsp;
<h2 dir="ltr" id="span-span-sec-s-position-on-cryptocurrencies-as-securities-span-span">SEC’s Position on Cryptocurrencies as Securities</h2>
The SEC's actions against eToro are part of a larger campaign to regulate the crypto space. The settlement suggests the SEC sees most cryptocurrencies beyond Bitcoin, Ethereum, and Bitcoin Cash as securities. This follows a similar pattern to earlier actions taken by the SEC against Ripple and other crypto projects.
&nbsp;
In 2020, following the SEC's lawsuit against Ripple, eToro delisted XRP and three other cryptocurrencies.&nbsp;
&nbsp;
eToro’s settlement with the SEC may prompt other crypto platforms to rethink their U.S. operations. Major players like&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/sec-slams-coinbase-with-lawsuit-after-binance">Coinbase</a>,&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/binance-celebrates-as-us-court-rules-bnb-token-sales-are-not-securities">Binance</a>, and Kraken are already entangled in legal battles with the SEC, contesting the regulator’s stance that most cryptocurrencies are securities.&nbsp;
&nbsp;
These exchanges argue that digital assets do not meet the traditional definition of securities, and the outcome of these cases could reshape the entire crypto industry in the U.S.

eToro Limits U.S. Crypto Offerings to BTC, ETH, and BCH After $1.5M SEC Settlement

Table of Contents

BSCN

Other articles published on Sep 19, 2024

Worldcoin (WLD) Surges Amid Growing Demand After Poland Launch

CryptoCom Gains Approval to Offer Services in Bahrain

Bitcoin’s 1,200% Growth: Why This Altcoin Could Explode 8,500% by 2025!

Baby Doge and NEIRO Shine, But These 3 Under-the-Radar Coins Are Ready to Explode

Vana Secures $25M in Funding to Overcome AI Data Wall

Coinpedia Fintech News

Join our free newsletter for daily crypto updates!