Popular crypto brokerage eToro made headlines after the company said it would no longer allow users to buy Tron (CCC:TRX-USD) Where Cardano (CCC:ADA-USD) by December 26. Staking in both tokens will no longer be effective by December 31, and the final staking payment will take place on January 15, 2022. In response, the price of the Tron crypto has fallen 5% in the past 24 hours, while Cardano fell 8%.
Tron is the native Tron Foundation token of entrepreneur Justin Sun. Crypto is up 263% year on year (YTD) versus Bitcoin (CCC:BTC-USD) 91% return over the same period.
Crypto fans are certainly not happy with this move, so why exactly did eToro make this unpopular move?
Tron Crypto delisting: what you need to know
The eToro trading platform has raised regulatory concerns over its delisting announcement. The delisting comes months after Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated his position that cryptocurrency platforms are too big to survive without regulation. Gensler added that “the crypto market is]at the level and nature that if it is to be relevant in five and 10 years, it will be relevant in a public policy setting.
Further, the spokesperson for eToro said this about the impending delisting: “The regulatory landscape for crypto is changing rapidly. As a result, we will limit the ability for US users to open new positions or earn staking rewards for ADA and TRX.
What’s next for Tron shareholders on eToro?
What if you currently own Tron on the eToro 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 owners will no longer be able to wager on Tron rewards starting January of next year. Tron holders on eToro may want to switch brokerage houses to take advantage of the staking rewards.
Nonetheless, the threat that other crypto brokerage firms will follow in eToro’s footsteps and remove Tron and other cryptocurrencies from the list is certainly real. While eToro may be the first domino to drop, the possibility of other major platforms, like Coinbase (NASDAQ:PIECE OF MONEY) and Gemini, the delisting of scrutinized crypto-currencies has been reinforced.
At the time of publication, Eddie Pan had (directly or indirectly) no position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.