Cryptocurrency controversy sinks Cardano and Tron as Etoro limits their trading. Following a decision by online trading platform eToro to delist Cardano (ADA) and TRON (TRX). From its platform, the prices of both cryptocurrencies plummeted on Wednesday. The decision left crypto market watchers perplexed. And the digital coins’ prices plummeted even further.
According to market data, TRON has fallen by more than 5 percent on the day. While Cardano has fallen by more than 8 percent on the day.
A brief statement from the exchange Cryptocurrency controversy stated that the decision was based on “unspecified regulatory concerns.” But it comes at a time when authorities are attempting to establish greater control . Over the cryptocurrency sector in order to protect investors.
“The regulatory environment for cryptocurrency is changing at a rapid pace. We will be restricting the ability of U.S. users to open new positions in,. Or to earn staking rewards for, ADA and TRX as a result of this decision.” It is said an eToro representative.
Users will no longer be allowed to create new holdings in either cryptocurrency. Beginning on December 26, and their ability to collect a yield. For staking the same assets will come to an end on December 31.
Despite the fact that eToro informed consumers that they would not be forced to sell. Their existing holdings in those cryptocurrencies. Both assets have seen significant price declines since the statement made. eToro did not elaborate on the specific factors that led the action.
In an interview with Yahoo Finance, Mati Greenspan, CEO of financial research firm Quantum Economics.. Stated that he was unable to instantly determine which U.S. rules. Influence ADA and TRX that do not also apply. To the rest of the cryptocurrency controversy market.
The broad effort to rein down what SEC Chairman Gary Gensler
As a result of the broad-based effort to reign in what SEC Chairman Gary Gensler. Has referred to as the “Wild West” of digital currencies, there has been some uncertainty. In the cryptocurrency market. Because of this, some market participants are scrambling. To have their voices heard in the debate over regulation. And others are attempting to get ahead of potential enforcement measures. Which could be motivating eToro’s thinking.
The Securities and Exchange Commission (SEC) classified Bitcoin (BTC-USD) and ethereum (ETH-USD). The two most popular cryptocurrencies, as commodities rather than securities. However most cryptocurrencies offered on exchanges to U.S. investors. Are not registered as commodities with the SEC.
The SEC’s chairman, Gary Gensler, has expressed his personal opinions on a number of occasions. Since taking office as the agency’s chairman. He has stated that many crypto assets.Particularly those that fall within the Decentralized Finance or DeFi category. Are ‘Decentralized In Name Only (DINO). As a result, the SEC may very probably begin to take enforcement action. Against cryptocurrency exchanges that provide access to these assets.
In December 2020, the SEC revealed that it would file a lawsuit against Ripple. Another popular cryptocurrency (XRP). As a result of the continuing litigation, about 80 different cryptocurrency exchanges. Have at the very least temporarily delisted XRP, according to Carol Goforth. A law professor at the University of Arkansas. With expertise in securities and cryptocurrency legislation.
In an interview with Yahoo Finance, Goforth said that he had noticed the most of the delistings. That had taken place. “However, it’s not apparent that’s what’s going on here,” Goforth said.
Stablecoins, crypto lending, and offering consumers the opportunity to earn “staking incentives”. Have all garnered the attention of regulators in recent years.