EddieJayonCrypto
8 Feb 24
The U.S. Securities and Exchange Commission has charged TradeStation Crypto for failing to register a crypto lending product, resulting in the firm agreeing to settle the case for $3 million in fines. This includes a $1.5 million penalty paid to the SEC and another $1.5 million to state regulatory a...
The U.S. Securities and Exchange Commission has charged TradeStation Crypto for failing to register a crypto lending product, resulting in the firm agreeing to settle the case for $3 million in fines. This includes a $1.5 million penalty paid to the SEC and another $1.5 million to state regulatory authorities. The SEC's charges stemmed from TradeStation's failure to register the offer and sale of the crypto lending product, which was found to be offered as a security and required registration. Despite TradeStation voluntarily ceasing the offering and sale of the interest feature in 2022, the firm is still facing significant fines. The SEC's actions against digital asset companies for unregistered securities have expanded beyond major players, as demonstrated by their pursuit of TradeStation.
The regulator announced charges against the Florida-based company on Wednesday, alleging that it failed to register the offer and sale of a crypto lending product. The SEC said that TradeStation agreed to settle the charges by paying a $1.5 million penalty without admitting or denying wrongdoing. To address similar charges by regulatory authorities at the state level, the firm agreed to pay another $1.5 million, bringing its total fines up to $3 million, the SEC added.
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