A crypto-friendly investment company eToro has halted buying and selling Algorand (ALGO), Decentraland (MANA), Polygon (MATIC) and Dash (DASH) for US clients, as the SEC has equated them to securities.
From 6:00AM 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. (2/5)
— eToro US (@eToroUS) June 12, 2023
Representatives of the US arm said they had revised the lists of available cryptocurrencies “in light of a rapidly changing regulatory landscape”.
Assets were removed from the listing on June 12, but users can still hold and sell the remaining coins.
«We remain proponents of cryptocurrencies and believe in the importance of giving our users access to a diversified range of assets, including equities, ETF and options. We strive to work closely with regulators around the world to shape the future of the crypto industry and provide access to it for retail investors», the company said.
Some users noted that eToro had not delisted the native Solana token, which the SEC also labeled a security. Later company representatives explained that SOL is not part of the US division’s offering.
On June 5, the SEC filed suit against Binance and CEO Changpeng Zhao. The regulator brought 13 charges, including the sale of unregistered securities. Later the Commission filed a similar lawsuit against Coinbase.
As a reminder, due to ongoing litigation, the online broker Robinhood will discontinue support for Cardano (ADA), Polygon (MATIC) and Solana (SOL) from June 27.
Representatives of Polygon and Solana criticised the SEC’s approach to classifying the tokens on their platforms.