eToro Finally Launches in New York: Conquers Infamous BitLicense Years After FTX Collapse
eToro has officially launched its cryptocurrency trading services in New York, overcoming the state's notoriously stringent BitLicense regulatory framework nearly three years after its initial approval. The platform's long-delayed entry underscores the severe operational and compliance hurdles that continue to stifle crypto innovation in the U.S. market, with fewer than 40 companies ever receiving the green light from the New York State Department of Financial Services (NYDFS).
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.
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