Online broker eToro has issued a statement on its settlement with the Securities and Exchange Commission (SEC).
The full statement can be read below:
“As you may have seen, eToro USA LLC has reached a settlement agreement with the Securities and Exchange Commission (SEC).
In connection with that settlement, eToro has restricted its cryptoasset offerings to Bitcoin, Bitcoin Cash, and Ethereum for users in the United States. The timeline for these changes is outlined below.
As a business we have made a pragmatic decision which allows us to focus on continuing to provide innovative and relevant products across our diversified US business. US users can continue to trade and invest in stocks, ETFs, options and three of the largest cryptoassets.
eToro has been a financial services provider for regulated securities across the globe since before the invention of crypto. As an early adopter and global pioneer of cryptoassets, as well as a financial services provider for regulated securities, it is important for us to adhere to regulatory requirements, and we work closely with regulators around the world. We appreciate the importance of regulation to protect consumers.
We now have a clear regulatory framework for cryptoassets in our home markets of the UK and Europe, and we believe we will see additional regulatory clarity in the US in the near future. Once this is in place, we will look to enable trading in the cryptoassets that meet this framework. Nothing in the SEC’s order prevents us from making future changes to the assets we make available to US customers.
As a reminder, according to the terms of the settlement agreement:
- From September 11, 2024 eToro users based in the United States are only able to open (buy) new crypto positions in BTC, BCH, and ETH. It is not possible to open new positions in any other cryptoassets.
- From March 11, 2025 users will only be able to close (sell) crypto positions in BTC, BCH and ETH.
- Prior to March 11, 2025 users can close their cryptoasset positions or transfer their crypto holdings to the eToro Wallet for coins which are supported. You can find a list of supported cryptoassets here.
- On March 18, 2025 any remaining open positions in cryptoassets other than BTC, BCH and ETH and those not supported by the wallet at the time will be liquidated and the proceeds transferred to users’ available cash balance in their investment accounts.
Please note that in most cases no action is needed on your part. Only those positions that cannot be transferred to the wallet will be liquidated on March 18, 2025. This represents less than 3% of the total dollar value of US customers’ cryptoassets. Positions in coins which are redeemable to the eToro crypto wallet can remain as open positions on the eToro platform indefinitely so no action is required for these assets. The list of cryptoassets redeemable to the eToro Wallet can be viewed here.
Once again we apologize for the inconvenience that these changes may cause you. Our customer service team is on hand to answer your questions”.
The company notes that the settlement will impact its US clients only. Outside of the United States, eToro users can continue to enjoy access to over 100 cryptoassets.
