As part of a deal with the U.S. Securities and Exchange Commission (SEC), eToro USA will no longer trade in most cryptocurrencies. The trade site decided to pay a $1.5 million fine because it had been acting as an unregistered broker and clearing agency for crypto assets.
In the settlement, eToro decided to limit the types of cryptocurrency that users could trade in the U.S. They could only trade Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH). Starting September 12, U.S. customers will have 180 days to sell any other crypto assets they have on the site.
The SEC said that eToro had been acting as a broker and settlement agency since at least 2020, but it had not been following federal rules about stocks. The SEC thought that the crypto assets on eToro’s website were securities, so the company had to register under the securities rules that applied.
Gurbir Grewal, who is in charge of the SEC’s Division of Enforcement, said that eToro’s choice to take some tokens off its site is a step toward following the rules. Grewal stressed that this move not only makes investors safer but also sets an example for other crypto sites to follow.
This is yet another case of crypto companies being put under more governmental pressure. In 2024, the SEC has stepped up its enforcement efforts, which has caused fines to go up sharply. The SEC’s moves, like this settlement with eToro, which set new records, are part of a larger effort to regulate the growing crypto business and make sure it follows federal laws.
Since eToro is still operating in the U.S. even though the rules are tougher, this shows that the crypto industry is moving toward more openness and following federal securities laws.
