- In a significant regulatory development, the U.S. Securities and Exchange Commission (SEC) has halted all crypto trading on the American branch of eToro, except for three specific coins.
- The regulatory authority cited violations of federal securities laws by the platform as the primary reason behind this action.
- This decision has left many U.S. crypto investors in a state of uncertainty, especially regarding the future of their holdings on the platform.
The U.S. SEC’s recent move to restrict eToro’s crypto trading to just three coins spurs significant unease in the crypto community.
SEC Clampdown on eToro’s Crypto Trading Operations
The SEC has required eToro USA LLC to settle charges amounting to $1.5 million, claiming the platform operated as an unregistered broker and clearing agency. This settlement stems from the trading platform’s facilitation of buying and selling crypto assets considered securities without proper registration. As a result, eToro will now only allow the trading of Bitcoin, Bitcoin Cash, and Ethereum on its American platform.
Details of the SEC Action and Its Implications
According to the SEC’s detailed press release, eToro has been under surveillance for operating in violation of federal securities laws since 2020. This scrutiny led to the regulatory body’s latest enforcement move. As part of the settlement, eToro is providing its users a period of 180 days to liquidate any other crypto assets they hold on the platform. The SEC’s insistence on stringent compliance highlights its ongoing efforts to bring more regulatory oversight into the cryptocurrency space.
Performance of the Allowed Coins: Bitcoin, Bitcoin Cash, and Ethereum
At the time of reporting, Bitcoin (BTC) showed slight volatility with a trading price of $58,143, reflecting a 0.04% increase over the previous 24 hours. The price fluctuation saw a low of $57,354.41 and a high of $58,534.36 within the same period, with trading volume dropping by 19.60% to $29,911,624,056.
Ethereum and Bitcoin Cash Market Movements
Ethereum (ETH) witnessed a decline of 0.44%, currently trading at $2,349. This dip occurred amid the broader market’s adverse reactions to the SEC’s actions. The trading volume for ETH across the 24-hour window decreased significantly, showing a 30.14% drop.
Bitcoin Cash (BCH) experienced a sharper decline, with its price falling nearly 2% to $329. The coin’s low and high were recorded at $327.96 and $335.88, respectively, with a notable 27.30% decrease in its trading volume.
Conclusion
The SEC’s enforcement action against eToro serves as a stark reminder of the increasing regulatory scrutiny facing the crypto industry in the U.S. This crackdown not only affects eToro but also sends a clear message to other platforms operating without proper regulatory approvals. The market response to these regulatory measures underscores the volatility and sensitivity of the crypto market. Moving forward, investors and platforms may need to brace for further regulatory actions as the SEC continues to enforce compliance rigorously.
