eToro Settles with SEC, Limits U.S. Crypto Trading
eToro has agreed to a settlement with the U.S. SEC, which includes a $1.5 million penalty and a restriction on trading to only three cryptocurrencies: bitcoin, bitcoin cash, and ether. This settlement follows allegations that eToro operated as an unregistered broker and clearing agency since at least 2020.
| Score | Value |
|---|---|
Scale | 6 |
Novelty | 6 |
Positivity | 3 |
Reliability | 8 |
Actionability | 7 |
Society | 7 |
Journalism | 4 |
Highlights
- eToro will stop offering nearly all cryptocurrencies to its customers as part of a settlement with the U.S. Securities and Exchange Commission.
- eToro agreed to pay a penalty of $1.5 million for operating as an unregistered broker and clearing agency.
- The only cryptocurrencies eToro customers in the U.S. will be able to trade are bitcoin, bitcoin cash, and ether.
- The SEC alleged that eToro provided U.S. customers the ability to trade crypto assets deemed to be securities since at least 2020.
- The settlement allows eToro to focus on providing innovative products across its diversified U.S. business.
Perspectives
- The SEC's actions against eToro reflect its broader campaign to regulate the crypto industry, emphasizing that many cryptocurrencies should be treated as securities. This perspective highlights the ongoing debate over the classification of digital assets and the SEC's role in enforcing compliance. [1][3]
- Some legal experts express disappointment with eToro's decision to settle, suggesting that the company should have challenged the SEC's authority in court instead of accepting the settlement. This opinion reflects a belief that the SEC's jurisdiction over cryptocurrencies is still a contentious issue. [1]