eToro has recently announced that, in light of the ongoing SEC lawsuits, it will be delisting four crypto tokens for its US customers as of July 12.
Social trading platform eToro announced it would delist four crypto tokens for its US customers on July 12. The tokens, including Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC), were chosen for delisting due to Securities and Exchange Commission's (SEC) lawsuits against Coinbase and Binance. In those lawsuits, the SEC alleged that certain tokens listed on these exchanges are unregistered securities, which violates federal investment laws.
The multi-asset investment company's decision to remove these tokens is a sign that U.S. crypto-friendly brokers are taking the SEC's actions seriously. The company is also considering changes to comply with regulatory requirements in the digital asset space. The SEC has been actively cracking down on the crypto industry in recent months, and its actions have raised concerns among investors about the industry's future.
The delisting of these tokens will likely harm the price of these assets. However, it is important to note that eToro's customers can still hold and sell existing positions in these tokens.
The Israeli company is not the only crypto broker that has taken steps to comply with the SEC's regulations. In April, Robinhood delisted three crypto tokens – Cardano (ADA), Solana (SOL), and Polygon (MATIC) – from its platform. Robinhood said it was "actively reviewing" its coin listings because of the SEC's enforcement actions against Binance and Coinbase.
The SEC's actions against Coinbase and Binance are a significant development for the crypto industry. The SEC has historically been reluctant to regulate the crypto industry, but its recent actions suggest that the agency is taking a more active role in the space.