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Cryptocurrencies Cardano (ADA) and TRON (TRX) sank on Wednesday, following a decision by online trading platform eToro to delist the digital coins on its platform — a move that left crypto market watchers flummoxed.
TRON tumbled by over 5% on the day, while Cardano has sold off by over 8%, according to market data.
In a terse statement, the exchange based its decision on unspecified regulatory reasons, but it comes at a time when authorities are moving to exert more control over the crypto sector, in a bid to protect investors.
“The regulatory landscape for crypto is evolving rapidly. As a result, we will be limiting the ability for U.S. users to open new positions in, or earn staking rewards for, ADA and TRX,” said an eToro spokesperson.
Starting December 26, users won’t be able to open new positions in either coin, and their ability to receive a yield for staking those same assets will end on December 31.
While eToro assured customers they will not be forced to sell their existing holdings in those cryptocurrencies, both assets came under selling pressure since the announcement. eToro did not specify exactly what concerns prompted the move.
Mati Greenspan, CEO of investment research firm Quantum Economics, told Yahoo Finance that he couldn’t immediately identify which U.S. regulations affect ADA and TRX that don’t also apply to the rest of the crypto market.
“As a user and former employee I support their decision but a bit more clarity into their train of thought would be appreciated by the community,” said Greenspan.