eToro removes SEC-targeted tokens: ALGO, MANA, DASH and MATIC
Israel-based investing platform eToro has revealed its plan to delist several crypto tokens for its U.S. customers within one month. As of July 12, American traders will no longer be able to open positions in tokens such as Algorand (ALGO), Decentraland (MANA), Dash (DASH), and Polygon (MATIC).
eToro cited “recent developments,” specifically mentioning the SEC’s lawsuits against Coinbase and Binance, where the regulator claimed that certain controversial tokens should be classified as securities.
The move comes shortly after popular investment app Robinhood delisted cardano (ADA), solana (SOL), and polygon (MATIC), the 8th, 10th, and 11th largest crypto assets by market capitalization. The publicly-listed company also said that it was “actively reviewing” its coin listings in the wake of recent SEC’s enforcement actions against Binance and Coinbase.
The developments indicate that US crypto-friendly brokers are taking the SEC’s actions seriously and are considering changes to comply with regulatory requirements in the digital asset space. The watchdog filed lawsuits against both Binance.US, the American subsidiary of the largest cryptocurrency exchange globally, and Coinbase, the largest exchange in the United States. The SEC alleges that several tokens listed on these exchanges are unregistered securities, which violates federal investment laws.
eToro made headlines earlier this year when it partnered with Twitter to enable its users to view market charts and access real-time information about stocks, cryptocurrencies, and other financial assets.
The new feature was launched on the Twitter app and it effectively expands the platform’s $Cashtags feature. Additionally, users will be able to go directly to the eToro brokerage site from Twitter and invest in the assets they searched for. eToro claims that the partnership with Twitter will not only enhance financial education but also increase profitability.
In addition to the expanded $Cashtags feature and real-time price searches, users will be able to click on a “view on eToro” button within Twitter’s app, which will direct them to eToro’s platform to buy and sell an expanded range of financial instruments.
The partnership with eToro is part of Elon Musk’s plan to create an “everything app” for the platform. He previously expressed admiration for Tencent’s WeChat, which started out as a messaging app and has since evolved into an all-in-one platform. Musk also believes an “everything app” could be a solution to the problem of app overload, where users are forced to use multiple apps to complete different tasks.