eToro USA Settles with SEC, Agrees to Pay $1.5 Million and Restrict Crypto Offerings

The Securities and Exchange Commission (SEC) announced today that eToro USA LLC has agreed to pay $1.5 million to settle charges of operating as an unregistered broker and clearing agency in connection with its crypto asset trading platform. eToro has committed to ceasing violations of federal securities laws and will limit the crypto assets available for trading on its platform.

According to the SEC’s order, since at least 2020, eToro allowed U.S. customers to trade crypto assets classified as securities through its platform without registering as required by law. Moving forward, eToro will only allow U.S. customers to trade Bitcoin, Bitcoin Cash, and Ether. Customers will have 180 days from the issuance of the SEC’s order to sell any other crypto assets.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized that eToro’s decision to remove certain tokens aligns with regulatory compliance, enhancing investor protection and providing a model for other crypto intermediaries. The $1.5 million penalty reflects eToro’s agreement to cease its violations while continuing its U.S. operations.