Cardano and Tron prices drop after eToro restricts US users from accessing the coins #Cardano #cardanofeed #ADA #crypto #cardanocommunity #bitcoin #CoinMarketCap #blockchain #cryptocurrency #cryptonews #btc $ADA
On Tuesday, Israel-based crypto trading platform eToro announced that it will restrict access to Cardano (ADA) and Tron (TRX) users in the United States.
“US users will not be able to open new ADA or TRX positions starting on December 26, 2021. Additionally, staking for those assets will end on December 31, 2021.”
The announcement made the prices of both ADA and TRX to drop considerably. ADA was the most affected dropping by 5.4% in the last 24 hours while TRX dropped by 2.5%.
At the moment eToro only plans to restrict the opening of new positions. That means that US users who hold positions will continue to hold the same and can also sell the assets on the platform for USD.
eToro is not the first crypto exchange to delist a crypto coin. XRP which has been at loggerheads with the Securities Exchange Commission of the US was delisted by several exchanges including Coinbase last year.
“As the crypto industry grows in both size, sophistication, and impact, regulatory pressure on the altcoin space is likely to keep increasing, especially given [SEC Chair Gary Gensler’s] recent comments around the probability that certain tokens and base-layer tokens may be deemed securities,”
On the issue of eToro delisting the two coins in question, Caselin said that the reasons may vary although it is understandable since eToro is a regulated brokerage platform that serves the US market.