eToro logo is displayed on a smartphone screen. Source: Rafael Henrique - stock.adobe.com

Key Takeaways:

eToro has settled with the SEC, agreeing to halt most cryptocurrency trading in the U.S. and pay a $1.5 million fine.
U.S. customers will only be allowed to trade Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH), starting September 12.
This action is part of a broader SEC crackdown on unregistered crypto services, following a $4.47 billion settlement with Terraform Labs.

eToro, a popular trading platform, has agreed to halt most cryptocurrency trading in the U.S. as part of a settlement with the U.S. Securities and Exchange Commission (SEC).

The SEC charged eToro with operating an unregistered brokerage and clearing agency for its crypto services.

ETORO SETTLES WITH SEC – WILL TERMINATE TRADING ON “NEARLY ALL CRYPTO ASSETS”

– According to an official SEC release, eToro USA LLC has settled with the agency for $1.5 million on…

“charges that it operated an unregistered broker and unregistered clearing agency”

– As part… https://t.co/1bBLOhrCji pic.twitter.com/plGDQV3FYH
— BSCN (@BSCNews) September 12, 2024

To resolve the charges, eToro will pay a $1.5 million fine and limit U.S. customers to trading only Bitcoin (BTC), Bitcoin Cash (BCH), and Ether (ETH), starting September 12.

Users have 180 days to sell other crypto assets.

This settlement is part of the SEC’s broader crackdown on cryptocurrency, which has intensified in 2024, including a notable $4.47 billion settlement with Terraform Labs.

JUST IN: 🇺🇸 eToro settles lawsuit with SEC agreeing to limit crypto trading in the US.
— Watcher.Guru (@WatcherGuru) September 12, 2024

Earlier, eToro also faced regulatory scrutiny from the Philippines SEC for offering unregistered securities.

The SEC emphasized that eToro has been functioning as an unregistered broker in the U.S. since at least 2020, and this agreement will ensure compliance with federal laws to better protect investors.