The Securities and Exchange Commission (SEC) in the United States has come to an agreement with trading platform eToro in a settlement. The SEC had raised concerns about eToro operating as an unregistered broker and clearing agency for its crypto trading platform. This regulatory action is seen by many as a hindrance to innovation in the cryptocurrency sector.
As part of the settlement, eToro will limit trading services for US users to Bitcoin, Bitcoin Cash, and Ethereum. The company has agreed to pay $1.5 million to resolve the charges and will abide by federal securities laws moving forward.
eToro’s CEO, Yoni Assia, emphasized the importance of clear regulatory frameworks for the future of the industry. The company aims to offer innovative products while complying with regulations, particularly in the US market where there is a growing demand for clarity around crypto trading.
The settlement with the SEC allows eToro to focus on expanding its business in the US, providing trading options for stocks, ETFs, options, and the three major cryptocurrencies. The upcoming US elections are also expected to play a role in shaping crypto legislation and bringing about much-needed clarity for the industry.