Social investing platform eToro’s US business has reached a settlement with the Securities and Exchange Commission (SEC), agreeing to pay $1.5 million and cease trading in nearly all crypto assets.
The SEC charged eToro with operating as an unregistered broker and clearing agency due to its platform facilitating the buying and selling of certain crypto assets classified as securities. As part of the settlement, eToro will now permit US customers to trade only Bitcoin, Bitcoin Cash, and Ether. For a period of 180 days following the SEC’s order, customers will be allowed to sell all other crypto assets.
Gurbir Grewal, director of the SEC’s Division of Enforcement, stated, “By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection but also offers a pathway for other crypto intermediaries.”