popular trading platform eToro revealed that users based in the United States will no longer be able to initiate new positions in four prominent cryptocurrencies: Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC). The restriction will come into effect at 6:00 a.m. ET on July 12, 2023. The decision follows allegations made by the U.S. Securities and Exchange Commission (SEC) that these tokens qualify as securities, according to a report by CryptoSlate.
eToro’s move to restrict trading on these specific tokens is in response to the SEC’s claims. The SEC is responsible for overseeing the securities market in the United States and has been closely monitoring the cryptocurrency industry for compliance with existing regulations. By categorizing these tokens as securities, the SEC asserts that they fall under the purview of the U.S. securities laws, which necessitates compliance with specific regulations and reporting requirements.
The Securities and Exchange Commission’s scrutiny of cryptocurrencies has intensified in recent years due to concerns surrounding investor protection and market manipulation. To ensure compliance with these regulations, eToro, as a leading trading platform, has decided to restrict trading activities on Algorand, Decentraland, Dash, and Polygon for its U.S.-based users.