The Securities and Exchange Commission’s pursuit of digital assets or crypto assets deemed to be securities is ripping through the crypto marketplace. In the recent enforcement action filed by the SEC against Coinbase (NASDAQ:COIN), the Commission highlighted multiple digital assets it believes are securities and thus transgressing securities laws.
While there has been no target legislation or regulation yet to identify when a digital asset is security, beyond the Howie Test, the SEC has stated in the past couple of years its opinion that ALL digital assets are securities – minus Bitcoin.
eToro, a popular “social” investment platform for both traditional and digital assets, shared with CI that it has a framework in place that reviews crypto assets they offer. The company said that due to recent developments, they will be making some changes to their crypto offering for US customers.
eToro states:
“From 6:00 AM ET on Wednesday, July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins.
Please note that these changes only apply to US customers.
We remain a supporter of cryptoassets and believe in the importance of offering our users access to a diversified range of asset classes, which includes stocks, ETFs, and options. We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the ordinary investor.”
eToro is headquartered in London/Tel Aviv but operates in multiple markets, including other European countries and US markets.
