The U.S. Securities and Exchange Commission is pursuing cryptocurrency brokerage TradeStation Crypto, and the company has agreed to settle the case with a $3 million fine.
Regulators on Wednesday announced charges against the Florida-based company for failing to register the offering and sale of virtual currency lending products.
The SEC announced that Trade Station agreed to settle the charges by paying a $1.5 million penalty without admitting or denying wrongdoing.
The company agreed to pay an additional $1.5 million to address similar charges by state-level regulators, bringing the total fine to up to $3 million, the SEC added.
“The order finds that TradeStation offered and sold a virtual currency financing product backed by an interest feature, and because it did not qualify for a registration exemption, TradeStation registered that offer and sale. but did not register,” the SEC said. A statement was read.
TradeStation voluntarily stopped offering and selling interest rate features to investors in 2022, according to a statement from the regulator.
Founded in 1982, TradeStation offers commission-free trading in stocks, exchange-traded funds (ETFs), futures, and options.
The company's cryptocurrency brokerage platform was launched in 2019, with only five digital coins available to traders at the time, including Bitcoin (BTC) and Ethereum (ETH).
The SEC is going after digital asset companies that offer investors what are considered unregistered securities. While imposing hefty fines on major crypto exchanges and platforms for the sale of certain digital coins and tokens, today's action means the agency's jurisdiction encompasses more than just large corporations. It shows that there is.
Edited by Ryan Ozawa.
