eToro Suspends Purchases of ALGO, MANA, MATIC, and DASH in the U.S

Summary:
eToro has suspended purchases of Algorand (ALGO), Decentraland (MANA), Polygon (MATIC), and Dash (DASH) for consumers in the U.S due to recent SEC litigation classifying these tokens as securities. Robinhood also made a similar decision a few days earlier in response to the SEC's classification.

Due to recent SEC litigation classifying these tokens as securities, the retail trading platform eToro has suspended purchases of Algorand (ALGO), Decentraland (MANA), Polygon (MATIC), and Dash (DASH) for consumers in the United States.

This decision follows a similar one made by Robinhood, another cryptocurrency exchange, a few days earlier in response to the SEC’s determination that Polygon (MATIC), along with Cardano (ADA) and Solana (SOL), are securities.

Complying With Regulatory Bodies

Following “recent developments” with the SEC and “the rapidly evolving regulatory landscape,” eToro US announced on Twitter on June 12 that it has evaluated its cryptocurrency listings. Although the assets were formally delisted as of 6:00 am Eastern Time on July 12, holders and traders on eToro in the United States may continue to sell them.

The firm announced:

“We remain a supporter of crypto assets 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.“

SOL was also considered a security in the recent litigation, and members of the community have wondered why eToro US hasn’t cited it. A representative from eToro, however, has said unequivocally that SOL is not available via eToro in the United States.

Similar Action in the Past

Considering that the SEC has claimed in litigation against Binance and Coinbase that significant assets including ADA, SOL, MATIC, MANA, ALGO, and numerous more are securities, the company has effectively elected to lean on the side of caution.

As a result of the SEC’s propensity for lawsuits, eToro US has taken similar action in the past. After the SEC filed litigation against Ripple Labs in 2020, the company delisted Ripple (XRP) in December of that year.

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