The trading app will only allow BTC, BCH, and ETH trading in the U.S. going forward. Other changes will occur in March 2025.
EToro has reached a settlement with the U.S. Securities and Exchange Commission (SEC) and reduced the availability of crypto for American users.
The company said that U.S. customers will be only able to trade Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH) alongside traditional assets starting Sept. 11.
Starting on March 11, 2025, users will only be able to close or sell BTC, BCH, and ETH positions. Users will also be able to close positions in other previously-offered cryptocurrencies until March 11, 2025. The company will automatically liquidate crypto and transfer the cash proceeds to customers on March 18, 2025.
In a separate statement, eToro co-founder and CEO Yoni Assia said international users will have continued access to over 100 cryptocurrencies. The company claims to serve 38 million users from over 75 countries. Accordingly, Assia said that the SEC settlement will have a “minimal impact on … global business.”
Furthermore, eToro believes the U.S. will soon introduce a regulatory framework for crypto that is similar to frameworks already in place in the U.K. and Europe. If the U.S. implements such a framework, the company will consider listing cryptocurrencies that satisfy the relevant requirements, Assia said.
In an announcement, the SEC said said it charged eToro with operating an unregistered broker and clearing agency, allowing U.S. users to trade crypto assets offered and sold as securities since 2020. In doing so, eToro allegedly did not comply with registration provisions of U.S. federal securities laws.
Etoro has consented to a cease and desist order and a $1.5 million penalty along with other requirements. It does not need to admit or deny the SEC’s findings.
Gurbir Grewal, director of the SEC’s Division of Enforcement, said that eToro’s removal of tokens offered as investment contracts brings it into compliance with the SEC’s regulatory framework. He added that eToro’s compliance will improve investor protection and offer a “pathway for other crypto intermediaries.”
The SEC’s action against the crypto sector extends beyond eToro. Critically, in May, the agency issued a Wells notice to the competing retail trading service Robinhood Crypto, warning of a potential enforcement action. Robinhood believes its listed crypto assets are not securities and intends to disprove the regulator’s claims if necessary. The situation has not seen public developments since May.
The SEC is involved in other crypto cases, including high-profile court cases against Coinbase and Binance. It has also issued Wells notices to other crypto companies.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.
