eToro Settles Charges with SEC

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eToro, a trading platform, yesterday agreed to settle charges from the US Securities and Exchange Commission for operating without proper registration as a broker and clearing agency, and for facilitating trading of certain crypto assets that are considered securities.

As part of the agreement, eToro will pay a $1.5 million fine and will only be allowed to trade three digital assets: Bitcoin, Bitcoin Cash, and Ether.

Although eToro has a smaller presence in the US crypto market compared to Coinbase, the settlement is significant as it sheds light on how the SEC categorizes different digital assets.

Not all digital assets are considered securities, and this decision from the SEC provides some insight into which assets fall under their jurisdiction.

However, the settlement does not offer comprehensive legal guidance, leaving room for potential interpretation and debate among legal professionals.