Popular trading platform eToro will halt trading for most cryptocurrencies following a settlement with the US Securities and Exchange Commission (SEC). The SEC charged eToro with operating an unregistered brokerage and clearing agency for its crypto trading activities.
The SEC announced that eToro has agreed to pay $1.5 million and limit the number of crypto assets available for trading in the US. This move complies with federal securities laws regarding the facilitated buying and selling of certain crypto assets as securities.
Starting September 12, US customers will only be able to trade Bitcoin, Bitcoin Cash, and Ether. Customers need to sell all other crypto assets within 180 days. This isn’t eToro’s first regulatory challenge. In April, the Philippines SEC also accused the platform of offering unregistered securities.
See related: Twitter Partners With eToro; Providing Real-Time Cryptocurrency And Stock Prices
SEC’s Crypto Enforcement
In 2024, the US SEC imposed nearly $4.7 billion in fines against crypto firms and executives, marking a 3,000% increase from 2023. This spike was primarily driven by a $4.47 billion settlement with Terraform Labs and its former CEO, Do Kwon, in June.
Despite fewer cases, the SEC’s total fines this year exceeded the combined amount from 2013 to 2023, reflecting a strategic focus on high-profile cases. The fines included penalties, forfeiture, and other financial recoveries.
