In a statement issued to clients on Tuesday, Israeli cryptocurrency exchange eToro announced that it would delist Cardano (ADA) and Tron (TRX) for US clients by the end of the year.
After December 31, US users will no longer be able to open new token positions or staking ADA and TRX. In addition, the wallets will effectively be in withdrawal-only mode until the first quarter of 2022, where the sale will also be limited. In making the decision, eToro cited the regulatory concerns surrounding both assets.
The move came as a surprise to some, as the ADA has not traditionally been associated with regulatory problems. In context, tokens like XRP, the creators of which are currently involved in an ongoing lawsuit with the Securities and Exchange Commission, or SEC, as well as Monero, which is a privacy coin that some fear is easily abused for illicit purposes, they face the brunt of regulatory scrutiny in the cryptocurrency industry.
ADA has seen a rapid price rally this year, and is currently in the top 10 cryptocurrencies by market capitalization. During the previous quarter, Charles Hoskinson, founder of Cardano, announced a partnership with the blockchain analytics provider Confirmed to comply with regulatory frameworks, such as anti-money laundering directives. The move was criticized by some ADA supporters, who wanted the project to take on a more decentralized character.
Businesses operating in the blockchain sector often come under intense pressure from regulators when it comes to delisting coins or disconnecting certain services. In September, Coinbase abandoned its cryptocurrency lending platform plans after the SEC threatened to sue the company. However, for the time being, the rise of decentralized exchanges and decentralized financial protocols have provided popular alternatives for those looking to legally circumvent these measures.