eToro, trading platforms for retailers, has suspended the purchase of Dash, Algorand, Polygon and Decentraland for buyers in US, due to recent SEC lawsuits claiming that the tokens are securities.
The action was taken only a few days after rival Robinhood also stopped supporting MATIC and Cardano and Solana, two additional cryptocurrencies that the US Securities and Exchange Commission has classified as securities.
A Twitter post from eToro US on June 12 stated that the company has examined its cryptocurrency holdings “as a result of the rapidly changing regulatory landscape” and “recent actions” with the SEC.
The digital assets can still be held and traded by US users of eToro even though they were formally delisted as of July 12 at 6:00 am Eastern Time.
“We continue to support cryptocurrency assets and think it’s important to give our users access to a variety of asset classes, such as stocks, ETFs, and options. We are dedicated to cooperating closely with policymakers worldwide to influence the cryptocurrency sector’s future and promote accessibility for the typical investor, the company said.
Due to the fact that the US Securities and Exchange Commission has now alleged in litigation against Binance and Coinbase that significant assets including ADA, SOL, MATIC, MANA, ALGO, and many more are securities, the company has effectively chosen to fall on the side of caution.
Community members have inquired why SOL, which was also classified as a security in the most recent litigation, hasn’t been mentioned by eToro US. SOL is not one of eToro US’s options, according to an eToro spokeswoman.
In reaction to the litigation-friendly SEC, eToro US has already taken action to limit access to specific assets. As a result of the SEC’s action against Ripple Labs, the company also removed Ripple XRP in December 2020.