eToro Settles with SEC for $1.5M
eToro will pay a $1.5M fine to the SEC and reduce its crypto offerings in the U.S. after being accused of operating without proper registration.
Key points:
- SEC fine: eToro will pay $1.5M to settle charges.
- Fewer crypto tokens: eToro will stop supporting several crypto tokens in the U.S.
- Limited U.S. offerings: Bitcoin, Ethereum, and Bitcoin Cash will remain available.
- March 2025 deadline: U.S. users must sell non-supported crypto by March 18, 2025.
- Global impact: Minimal effect on eToro’s global business.
eToro’s Agreement with the SEC:
The SEC fined eToro $1.5M for operating as an unregistered broker and clearing agency in the U.S. The company agreed to reduce its crypto offerings to comply with regulations.
Instead of offering many tokens, eToro will limit its U.S. services to Bitcoin, Ethereum, and Bitcoin Cash.
By March 18, 2025, U.S. users must sell unsupported crypto tokens or transfer them to an eToro wallet if available.
This affects less than 3% of U.S. crypto holdings. Customers are not required to take action immediately, but the deadline is firm.
Yoni Assia, eToro’s CEO, reassured global users that these changes will not impact the company’s international operations. Non-U.S. users can continue trading over 100 crypto assets.
Assia also emphasized the company’s commitment to working with regulators and expressed optimism for clearer regulations in the U.S.
Read more: OpenSea CEO Confirms SEC Wells Notice, Prepares for Legal Battle Over NFTs as Securities
TL;DR? U.S. eToro users have until March 2025 to manage their crypto holdings amid SEC-enforced changes.
