eToro will remove Tron and Cardano from its platform for US-based users

Although delisted, social trading platform eToro said it remains dedicated to the crypto community.

Social trading networks Cardano (ADA) and Tron (TRX) will be delisted for US customers. Affected users will be unable to establish new positions or earn staking incentives.

The company cited “evolving regulatory environment” as the reason for the change. It didn’t elaborate on what this meant.

“These modifications reflect the changing regulatory environment,” it said.

eToro Cardano and Tron delisting details

According to eToro, US users will be unable to initiate new Cardano or Tron holdings after Dec. 26. Staking for certain digital assets ends on Dec. 31.

Moreover, staking reward disbursements will end on Jan. 15, 2022, with the final incentive paid in US dollars rather than tokens.

US users are not allowed to create new positions, the company stated. And they don’t make users close open positions. The net impact will be a gradual decline in Cardano and Tron trading volume.

eToro expressed displeasure at having to make this move. But they will continue to aggressively promote the crypto industry.

IOHK CEO on US crypto regulation

Cardano founder Charles Hoskinson argued last week that the US needs a fresh approach to crypto legislation. Moreover, the current regulatory framework does not favor digital assets.

Hoskinson criticized both functional and definitional systems. He went on to say that crypto needs to be controlled depending on how it works.

“The US needs to change from a definitional to a functional regulatory framework. We’ve moved beyond the world of commodities, currencies, and security,” Hoskinson said.

Using the definitional system, Hoskinson chastised authorities for failing to appropriately define virtual asset providers and utility tokens.

“We need a new regulatory structure with better classifications of things. So, in the US, we don’t have a proper definition of virtual asset service provider. We don’t really know what a utility token is,” Hoskinson added.

Overall, he stated that the sector requires a stronger functional and definitional paradigm to progress towards fairer regulation.


Image courtesy of Cointelegraph News/YouTube

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