SEC vs. eToro: $1.5 Million Fine and Uncertain Crypto Future in the U.S.

Sponsored Ad

eToro, a leading online trading platform with over 30 million users globally, has agreed to pay a $1.5 million fine to the U.S. Securities and Exchange Commission (SEC). The fine comes as part of a settlement over allegations that eToro operated an unregistered cryptocurrency brokerage service in the United States.

On September 12, 2024, the SEC revealed that eToro had provided U.S. customers the ability to trade crypto assets considered securities without adhering to federal registration laws. eToro neither admitted nor denied the allegations but agreed to the terms set forth by the SEC.

As part of the settlement, eToro will cease offering a wide range of cryptocurrencies in the U.S. market. The platform will limit its offerings to only Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH), while customers have 180 days to sell other assets before they are no longer available.

The case underscores ongoing tensions between the SEC and crypto platforms. At the same time, SEC Chairman Gary Gensler is facing his own scrutiny, as members of Congress have launched an investigation into potential political bias in the SEC’s recruitment policies.

This case further highlights the challenging regulatory environment facing cryptocurrency platforms in the U.S., raising questions about the future of crypto trading in the country.