- eToro adjusts its list of cryptocurrencies for US clients in response to legal action by the SEC.
- Starting July 12, US clients will not be able to open new positions in tokens such as ALGO, MANA, DASH, and MATIC on eToro.
- Despite the restrictions, clients will be able to hold and sell their existing positions in the affected tokens.
- Fears of SEC restrictions appear to be cooling and the market is showing signs of recovery
Social trading platform eToro has announced that it will delist some crypto tokens for United States clients, in response to legal action by the US Securities and Exchange Commission (SEC).
Starting yesterday, US clients will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC) tokens, according to eToro’s announcement in a tweet.
Although clients will not be able to open new positions in the mentioned tokens, they will still have the ability to hold and sell their existing positions in these crypto assets. This means that those who already own Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC) will be able to keep their investment and make decisions about their sale in the future.
eToro justifies this move by citing “recent developments,” in reference to legal action taken by the SEC against crypto exchanges Coinbase and Binance, as well as the regulator’s classification of certain cryptocurrencies as securities. This decision by eToro follows in the footsteps of Robinhood, which last week removed Cardano (ADA), Solana (SOL) and MATIC.
Cooling of interest due to SEC lawsuits
According to market intelligence platform Santiment, interest in the SEC’s lawsuits has waned. This could indicate a steady growth of cryptocurrencies until further progress is made in the legal cases.
Recent reports show that cryptocurrency exchanges have seen negative net flows in excess of $4.6 billion in the past week, relative to Bitcoin (BTC), Ethereum (ETH), and USDT. These data suggest a trend of HODLing or accumulation. Additionally, Bitcoin’s SOPR ratio has shown increased interest as the asset’s price corrected from its local low around $25 500.
At the same time, according to CoinMarketCap, the global crypto market capitalization has increased by 1.18% in the last 24 hours, from $1.04 trillion to $1.06 trillion at the time of writing.