Popular crypto brokerage eToro is making headlines after the company stated that it would no longer allow users to buy Tron (CCC:TRX-USD) or Cardano (CCC:ADA-USD) by Dec. 26. Staking in the two tokens will no longer be effective by Dec. 31, and the final staking payout will occur on Jan. 15, 2022. In response, the price of Tron crypto has fallen 5% during the past 24 hours, while Cardano has dropped 8%.
Tron is the native token of entrepreneur Justin Sun’s Tron Foundation. The crypto has increased 263% year-t0-date (YTD) compared to Bitcoin’s (CCC:BTC-USD) 91% return during the same period.
Fans of crypto certainly aren’t happy with this move, so why exactly did eToro make this unpopular decision?
Tron Crypto Delisting: What You Need to Know
The trading platform eToro cited regulatory concerns for its delisting announcement. The delisting comes a few months after Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated his stance that cryptocurrency platforms are too big to survive without regulation. Gensler added that “the crypto market is] at the level and the nature that if it’s going to have any relevance five and 10 years from now, it’s going to be within a public policy framework.”
Furthermore, spokesperson for eToro had this to say about the impending delisting: “The regulatory landscape for crypto is evolving rapidly. As a result, we will be limiting the ability for US users to open new positions in, or earn staking rewards, for ADA and TRX.”
What’s Next for Tron Shareholders on eToro?
So what if you currently own Tron on eToro’s platform? According to eToro, current holders will be allowed to hold their existing positions indefinitely, as the new limitations will only apply to new purchases. However, current holders will no longer be able to stake rewards from Tron starting January of next year. Holders of Tron on eToro may want to switch brokerages to take advantage of staking rewards.
Nonetheless, the threat of other crypto brokerages following in eToro’s footsteps and delisting Tron and other cryptocurrencies is certainly real. While eToro may be the first domino to fall, the possibility of other major platforms, like Coinbase (NASDAQ:COIN) and Gemini, delisting scrutinized cryptocurrencies has been heightened.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.