eToro to Delist ALGO, MATIC, MANA, and DASH for US Customers
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eToro to Delist ALGO, MATIC, MANA, and DASH for US Customers

There are roughly 67 cryptocurrencies that the SEC has designated as "securities" in recent years.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

eToro, announced it would delist a group of cryptocurrencies “due to recent developments” in the sector, referring to the US Securities and Exchange Commission’s (SEC) lawsuits against Binance and Coinbase, just a week after Robinhood did the same.

eToro’s US customers will not be able to buy Polygon (MATIC), Algorand (ALGO), Decentraland (MANA), and Dash (DASH) after July 12.

eToro US Will Delist ALGO, MATIC, MANA, and DASH on 12th July

After the SEC’s latest crackdown on crypto exchanges, eToro announced it would delist several cryptocurrencies for US customers next month. According to the announcement, eToro will delist MATIC, ALGO, MANA, and DASH from its platform.

While the delisting will prevent users from opening new positions, they can still hold and sell their holdings in these tokens. eToro reiterated that the move would affect only US customers, meaning the four affected tokens will remain available for trading in other markets.

“From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins.”

– eToro wrote in its announcement on Twitter.

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Why Hasn’t the SEC Clamped Down on Stock Exchanges Over Listing of ‘Crypto Asset Securities’?

eToro said the delisting was due to “recent developments,” alluding to the SEC’s back-to-back lawsuits against Binance and Coinbase, the world’s top two leading crypto exchanges. As a result of its legal action, the securities regulator added several new tokens to its list of cryptocurrencies it considers “securities.”

Some of the major altcoins that have received this designation include Solana (SOL), Cardano (ADA), Binance Coin (BNB), Cosmos (ATOM), and Polygon (MATIC), among many others. Like eToro, stock brokerage Robinhood also announced it would delist SOL, ADA, and MATIC amid the regulatory heat.

However, it is important to note that eToro and Robinhood are delisting the aforementioned cryptocurrencies on their initiative rather than being forced by the SEC. Meanwhile, the commission continues to put extreme pressure on crypto exchanges, slamming them, among other things, for listing unregistered “crypto asset securities.”

The simultaneous listing of these assets on stock brokerages raises a question of whether the SEC is taking a double-standard approach and its consistency in enforcing securities rules across different trading platforms. Over the past week, ADA, SOL, and MATIC fell more than 20%, 22%, and 21%, respectively.

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In your opinion, what is the SEC’s ultimate goal in its intense crackdown on crypto? Let us know in the comments below.