eToro US to Halt Most Crypto Trading After SEC Settlement

eToro, a well-known stock trading platform, is set to discontinue trading for the majority of its crypto assets after reaching a settlement with the United States Securities and Exchange Commission (SEC).

The platform faced accusations of running an unregistered brokerage and clearing agency linked to its crypto trading services. As part of the settlement, eToro agreed to pay $1.5 million to resolve these charges, according to a statement from the SEC on September 12.

In addition to the financial settlement, eToro will restrict its US customers to trading only Bitcoin, Bitcoin Cash, and Ether tokens. Customers will be given a 180-day period, starting September 12, to sell their other crypto holdings.

This isn’t the first regulatory challenge for eToro. In April, the Philippines SEC also accused the platform of offering unregistered securities within the country.

eToro’s Role as a Broker Since 2020: SEC Findings

The SEC revealed in its settlement that eToro has operated as a broker and clearing agency in the US since at least 2020. The commission alleged that the platform failed to comply with federal securities registration requirements, despite facilitating crypto asset trading, which the SEC classified as a securities offering.

SEC’s Crypto Enforcement Surge

In 2024, the SEC experienced a remarkable increase in crypto enforcement, even before the eToro settlement. By September 10, the regulator imposed nearly $4.7 billion in penalties on crypto companies and executives—a staggering rise of over 3,000% from 2023.
A large portion of this surge stemmed from a record-breaking $4.47 billion settlement with Terraform Labs and its former CEO, Do Kwon, in June—the largest enforcement action in SEC history, according to a September 9 report from Social Capital Markets.

Despite fewer actions, the SEC’s total enforcement fines saw a 3,018% jump from the $150.3 million issued in 2023, indicating the agency’s new focus on targeting high-profile cases.

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