According to the official statement by the SEC, eToro has reached a settlement with the SEC and will cease trading in almost all cryptocurrency assets.
According to the SEC's statement, eToro will now only offer trading in Bitcoin (BTC), Ethereum (eth), and Bitcoin Cash (BCH) to US clients.
The SEC announced today that eToro USA LLC has agreed to pay $1.5 million to resolve charges that it operated an unregistered broker-dealer and an unregistered clearinghouse in connection with its trading platform that facilitated the trading of certain crypto assets as securities.
As part of the settlement, eToro agreed to cease violating applicable federal securities laws and only make a limited number of crypto assets available for trading.
“EToro has chosen to come into compliance and operate within our established regulatory framework by removing tokens offered as investment contracts from its platform. This decision not only enhances investor protection, but also provides a path for other crypto brokers. The $1.5 million penalty reflects eToro’s agreement to cease violating applicable federal securities laws while continuing to operate its U.S. operations,” said SEC’s Gurbir S. Grewal in a statement.
The statement also stated that eToro agreed to pay a $1.5 million fine and, within 187 days of the order being issued, to liquidate all crypto assets offered and sold as securities that eToro was unable to transfer to its customers, and to return the proceeds to the relevant customers, without admitting or denying the SEC’s findings.
*This is not investment advice.