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eToro Halts MATIC, ALGO, & Two Other Altcoins Amid SEC Crackdown

After a US official said that layer-2 scaling solution Polygon (MATIC), smart contract platform Algorand (ALGO), and two other altcoins were securities, the popular social trading platform eToro stopped buying them.

Due to the latest US crackdown on digital assets, eToro has announced that US users will no longer be able to buy ALGO, MATIC, gaming metaverse Decentraland (MANA), and privacy-focused protocol Dash (DASH).

“eToro has a framework in place which reviews the crypto assets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers.”

eToro’s move comes at the same time that the U.S. Securities and Exchange Commission (SEC) is suing the two largest cryptocurrency exchanges in the world, Binance and Coinbase, for allegedly breaking securities laws.

In the cases that were filed last week, the SEC says that several altcoins, including the four that eToro is not letting people buy, are securities. On July 12, the ban will go into force. The four assets can still be bought and sold by US buyers.

“From 6:00AM ET on Wednesday July 12th, 2023, US customers will no longer be able to open new positions in Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC). Customers can continue to hold and sell existing positions in these coins.

We remain a supporter of crypto assets and believe in the importance of offering our users access to a diversified range of asset classes, which includes stocks, exchange-traded funds (ETFs), and options.

We are committed to working closely with regulators around the world to shape the future of the crypto industry and champion access for the ordinary investor.

Please note that these changes only apply to US customers. If you have any questions please do not hesitate to contact our customer service team.”

Other sites for trading crypto have done the same things.

Since the SEC has called Solana (SOL), Cardano (ADA), and Polygon stocks, trading giant Robinhood will take them off its list on June 27.

Due to the regulatory body’s cases, the prices of many altcoins like ADA, MATIC, and SOL dropped last week.