TradeStation Crypto settles charges by SEC, 26 states

TradeStation Crypto, a subsidiary of the Japanese Monex Group, settled with the United States Securities and Exchange Commission (SEC) and a task force of state regulators for failing to register an interest-bearing lending product. The SEC and 26 states will split $3 million in penalties from the case. Between August 2020 and June 30, 2022, TradeStation Crypto offered a crypto lending product that allowed U.S. investors to deposit or purchase crypto assets in a TradeStation account in exchange for the companys promise to pay interest. The SEC issued a consent order finding that the product was an unregistered security. TradeStation Crypto did not admit to or deny the SEC findings. The North American Securities Administrators Association (NASAA) announced that TradeStation Crypto had reached a settlement with regulators in 26 states. TradeStation Crypto has already announced that it will cease providing services in the United States.