eToro breaks into New York as post-FTX rules reshape crypto competition

Popular trading platform eToro has officially entered the New York market, nearly three years after securing a BitLicense in February 2023. However, authorization to begin operations was only granted recently, highlighting the regulatory and operational hurdles companies face in New York’s crypto sector.

BitLicense is among the strictest cryptocurrency policies in the US. It was established in 2015 and is issued by the New York State Department of Financial Services (NYDFS). 

Fewer than 40 companies have received approval, but only a portion actually launch services. Due to this regulatory challenge, several firms, such as eToro, have established separate legal entities to operate in New York, while others avoid the state entirely.

Andrew McCormick, Head of eToro US, when asked whether the company anticipated such a lengthy delay, McCormick stated that it certainly was not the case, further elaborating that they knew it would not be an instant transition but hoped to launch within that year.

On the other hand, the timeline outlined the necessary steps for compliance, operational readiness, and regulatory approval to obtain a license, particularly in light of heightened regulatory scrutiny following the FTX collapse.

eToro achieves a significant milestone in its operation 

In February of this year, eToro shared better-than-expected fourth-quarter results driven by increased capital markets activity and a corresponding boost in trading income.

At this particular moment, investor confidence in the United States had skyrocketed after the country’s interest rate cut; all stocks were positive throughout the quarter. However, some market participants remained anxious due to cryptocurrency volatility. This was after Bitcoin suffered a significant loss in November 2025, following a period of gains since mid-2021.

Reports noted that several individuals allocated significant funds to specific AI-related stocks, resulting in unprecedented valuation spikes and sparking fears of a potential market bubble.

Yoni Assia, founder and CEO of eToro, shared his view on the matter. He noted an unusual client’s behavior pattern, alleging that digital asset traders illustrated heightened interest in commodities for the first time in history.

Even so, the firm’s fourth-quarter net trading income, driven by equities, commodities, and currencies, rose 43% to $115.6 million. Analysts attributed this rise to investors shifting capital from traditional assets into cryptocurrency, a trend fueled by high returns in the commodity market.

eToro received authorization to list twenty tokens under the existing state’s regulatory regime, with intentions to seek a higher limit later, citing information retrieved from individuals with knowledge of the matter who wished to remain anonymous due to the confidential nature of the situation.

McCormick described this move as a game-changer to their operation, stressing that the company was the first to be granted a BitLicense after the FTX bankruptcy.

“We were close to finishing our application when that incident occurred. It definitely increased scrutiny and diligence,” he said, adding that, “We take pride in meeting those tough standards because of our strong history focused on compliance and customer protection.” 

Analysts call for the urgency of a clear cryptocurrency framework 

Following eToro’s recent move, analysts noted the heightened scrutiny or support for crypto businesses extends beyond New York. At this time, McCormick noted that the company’s crypto services are unavailable in Hawaii and Nevada.

This factor drives his support for the potential passage of the US House’s Clarity Act, which would establish federal guidelines for the crypto market while assigning specific oversight roles to the SEC and the CFTC.

In the meantime, recent reports indicate that the Clarity Act and similar federal market structure regulations are deadlocked over disputes on how to divide authority among regulators. Analysts warn that a fractured state-by-state regulatory landscape will continue to disrupt US business growth, compliance, and product launches.