eToro Launches Crypto Trading in New York as U.S. Crypto Regulation Nears Turning Point

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eToro Launches Crypto Trading in New York while U.S. Regulatory Nears a Turning Point

Key Takeaways

  • eToro launches crypto trading in New York.
  • ~20 cryptocurrencies available at launch; staking under active regulatory discussion with NYDFS.
  • Coinbase CLO Paul Grewal says Digital Asset Market Clarity Act is “very close”.
  • EDX Markets – backed by Citadel, Schwab, and Fidelity – applies for OCC national trust bank charter.

As a crypto investor, it’s been frustrating watching eToro. They actually got a BitLicense – that’s permission to operate in New York – way back in February 2023, right after the FTX crash when regulators were really cracking down on crypto companies. But for three years, they couldn’t actually *use* it. Finally, on April 1st, 2026, they decided to stop waiting and move forward.

As an analyst, I’m following eToro’s continued expansion in the U.S., and I can report that New York residents now have access to cryptocurrency trading on their platform. This completes their availability across 48 states, letting users trade crypto alongside traditional assets like stocks and ETFs. This launch comes shortly after eToro successfully listed on Nasdaq as ETOR – a significant milestone after navigating a period of regulatory hurdles to reach a major U.S. exchange.

Why New York Took Three Years

As a crypto investor, it’s good to hear some honesty from industry leaders. eToro US’s head, Andrew McCormick, recently explained why they held off on fully launching in New York. Basically, during the Biden administration, they didn’t see a welcoming environment for crypto growth, even *with* the necessary licenses. They felt it wasn’t worth pushing forward. But now, things are changing, and they’re ready to move ahead.

As a crypto investor, I know New York’s BitLicense is notoriously difficult to get – it’s the toughest regulation of its kind in the US. It’s been around since 2015, and less than 40 companies have managed to jump through all the hoops to get one. eToro, for example, had to build a really solid system for compliance, hold a lot of capital in reserve, and put strong anti-money laundering measures in place. They also had to commit to protecting customers and accept constant oversight from New York’s financial regulators. All of this happened during a really tough time for the industry, and they even had to limit their US offerings to just Bitcoin, Bitcoin Cash, and Ether after settling with the SEC in 2024.

New York residents now have access to around 20 cryptocurrencies on the eToro platform, which is fewer than the 115 available in other countries where eToro operates. This difference is due to the New York Department of Financial Services requiring individual approval for each cryptocurrency. eToro is also in talks with regulators about offering staking services. This launch opens up access to over 9 million potential users in New York, representing a significant new market for eToro. A recent eToro survey shows that crypto is already popular with U.S. investors – 36% currently own it, and another 17% are planning to invest more.

McCormick pointed out that the U.S. has varying rules for businesses depending on the state. He believes a single, national law is necessary to create a consistent system.

That bill may be days away.

The Bill That Could Settle Everything

According to a recent FOX interview reported by Seeking Alpha, Coinbase’s Chief Legal Officer, Paul Grewal, said a deal regarding the Digital Asset Market Clarity Act is likely to be finalized soon, with the remaining issues expected to be resolved within the next two days.

This new law aims to move away from the current system where rules for the digital asset industry are created through enforcement actions. It would clearly define which agency, the SEC or CFTC, has authority over digital assets, and provide companies with clear rules to follow instead of constantly worrying about legal risks.

A single issue – the ability to earn interest on stablecoins – has stalled the bill since the beginning of 2024. Banks have been arguing against letting stablecoin holders earn interest, fearing customers will move their money from traditional banks to digital wallets offering better returns. However, Grewal argues there’s no proof this would happen, and blocking stablecoin yields would actually give an unfair advantage to companies operating outside the U.S.

Negotiators are reaching a compromise that could address concerns about cryptocurrency. The plan would likely ban rewards on cryptocurrency holdings that aren’t being actively used, but allow rewards for things like payments and transactions. It’s still unclear if this will satisfy both banks and the crypto industry. There’s talk that the actual bill text might be kept secret until next week to prevent opposition groups from delaying the process before it’s discussed in committee. The goal is to have a hearing in the Senate Banking Committee within a few weeks and a full Senate vote before the 2026 elections, when passing new laws becomes more difficult.

If passed, the Clarity Act would build on last year’s GENIUS Act, which began to regulate companies that issue stablecoins but didn’t address how these digital assets function in the market or how they generate returns. Combined, these two laws would create the most complete set of U.S. federal rules for digital assets to date.

The Institutional Infrastructure Arriving With It

Although companies like eToro and Coinbase often grab public and political attention, the real foundation for crypto trading in the U.S. is being built by other players. This week, EDX Markets made a particularly important step in that development.

A new cryptocurrency exchange, supported by major financial firms like Charles Schwab, Citadel Securities, and Fidelity Digital Assets, has applied for a national bank charter. According to CEO Tony Acuña-Rohter, who spoke with Bloomberg, the company believes large banks will be key to the widespread adoption of crypto, and a federal charter will allow them to serve these institutions effectively.

If approved, EDX Trust would function as a national bank specializing in securely holding and settling digital assets. It would be designed to avoid the conflicts of interest that have caused problems for other crypto exchanges by being separate from the platform where trades are made. This setup would also simplify regulation, requiring oversight from just one federal regulator instead of navigating individual licenses in all 50 states.

This decision comes after several other companies applied for similar approval. As CoinDesk reported, Circle, Ripple, Crypto.com, and BitGo all received preliminary approval from the OCC in late 2025 and early 2026, and both Coinbase and Morgan Stanley have since submitted their own applications. A recent change to OCC regulations – specifically, 12 CFR 5.20 – made it legally clear how national trust banks can securely hold cryptocurrency for customers, and now major financial institutions are beginning to take advantage of this new possibility.

What the Data Says – and What Could Still Stop It

These events aren’t just happening by chance. They’re the result of regulations that initially hindered progress for two years, and have only recently begun to allow it. The evidence supporting this change is clear and deserves attention.

A recent eToro survey found that over half of U.S. individual investors (53%) already own cryptocurrency or are looking to invest more. Even though Bitcoin’s price has fallen by 50%, the amount of money held in Bitcoin ETFs remains strong, only 7% below its peak in October, suggesting continued confidence from institutional investors. The Office of the Comptroller of the Currency has also given conditional approval to four major companies seeking to provide crypto custody services in just four months. Finally, progress is being made on the Clarity Act – a bill aimed at regulating crypto – with a key Senate committee vote now anticipated within weeks, much sooner than previously expected.

Arguments against the proposal also have merit. The agreement on stablecoin yields hasn’t been finalized, and the full bill text is still private, so senators who oppose it haven’t been able to share their views yet. Concerns from banks about customers potentially moving their deposits could gain more support during the committee review than currently expected. Furthermore, initial approvals from the Office of the Comptroller of the Currency haven’t always led to full operation, and applications from companies like Circle and BitGo are still under extended review. The new exchange, EDX, might face similar delays.

Even if regulations improve, several larger economic factors are making it harder for institutions to adopt Bitcoin. These include the ongoing war in the Middle East, high oil prices (over $100 a barrel), and a consistently high level of fear and greed in the Bitcoin market – conditions that have historically slowed down institutional investment, no matter what happens in Washington.

The construction happening now is genuine. But whether things will remain stable enough for it to last is something no paperwork, legal approval, or special license can guarantee.

This article is for informational purposes only and shouldn’t be taken as financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Before making any investment choices, be sure to do your own research and talk to a qualified financial advisor.

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2026-04-02 14:31