The US Securities and Exchange Commission (SEC) has reached a settlement with eToro, a retail trading platform, over charges that it operated as an unregistered broker and clearing agency for cryptocurrency offerings. As part of the settlement, eToro will stop offering nearly all cryptocurrencies to its US customers and pay a $1.5 million penalty.
The SEC alleged that eToro allowed US customers to trade crypto assets that are considered securities since 2020, without complying with federal securities laws. eToro neither admitted nor denied the findings.
The settlement will only affect eToro’s US users. The company will only allow trading of bitcoin, bitcoin cash, and ether going forward. Customers will have 180 days to sell other tokens.
eToro’s CEO, Yoni Assia, said the settlement allows the company to focus on providing innovative products while being compliant with regulations. The SEC’s director of enforcement, Gurbir Grewal, said the resolution enhances investor protection and offers a pathway for other crypto intermediaries.
The SEC has argued that most cryptocurrency tokens are securities and subject to its registration rules, while many crypto firms dispute this. eToro is considering an initial public offering in New York or London.
eToro has reached a settlement with the SEC to stop offering most cryptocurrencies to US customers and pay a penalty. The company will only allow trading of a few cryptocurrencies going forward. This settlement highlights the ongoing regulatory debate over cryptocurrency and securities laws.
