The US Securities and Exchange Commission (SEC) is reportedly weighing whether it should go after cryptocurrency firms Celsius Network, Voyager Digital and Gemini over their interest-bearing businesses, Bloomberg has learned, referring people close to the matter.
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The SEC is exploring whether the companies' offerings should be registered as securities. As of press time, the companies are paying their clients rates higher than most US bank savings accounts by lending out their cryptocurrencies to other clients.
In September 2021, the Department of Financial Institutions of Kentucky accused crypto lending service Celsius Network of selling unregistered securities. According to the regulator, Celsius Network's proposals violate state law as the service failed to disclose to its customers information about what was happening with their deposits.
Last summer, four US financial watchdog accused BlockFi of violating securities law. The financial regulators of Texas, Alabama, Vermont and New Jersey believe that the company has been funding its business at least partly through the sale of unregistered securities.
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