TradeStation Crypto to pay $3M to settle SEC, state charges

The Securities and Exchange Commission charged TradeStation Crypto with the unregistered offer and sale of a crypto lending product. According to the SECs order, TradeStation voluntarily stopped offering and selling the interest feature to investors on June 30, 2022. The company agreed to a cease and desist order and will pay $1.5 million to the SEC. Additionally, TradeStation will pay $1.5 million as part of a multi-state settlement. The SEC alleged that TradeStation offered and sold a crypto lending product in 2020, which had an interesting feature. The order finds that TradeStation offered and sold the crypto lending product with the interest feature as a security, and since it did not qualify for a registration exemption, TradeStation was required to register its offer and sale but failed to do so.