TradeStation
5,785 views
3 Posts
Hot
Latest
Tradestation Settles SEC and State Charges for $3 Million
Tradestation Crypto, Inc., a Florida-based cryptocurrency trading platform, has agreed to pay a total of $3 million in penalties to resolve allegations by the SEC and a consortium of state regulators. The charges accused Tradestation of offering and selling an unregistered crypto asset lending product that promised investors interest earnings on their deposits, an SEC press release revealed on Wednesday.The SEC’s investigation found that from August 2020 to June 2022, Tradestation Crypto marketed a crypto lending product that enabled U.S. investors to deposit or purchase crypto assets in exchange for the company’s promise to pay interest. However, the agency determined that Tradestation failed to register the offer and sale of this product, which it deemed a security, thereby violating federal securities laws.To resolve the SEC’s charges, Tradestation has agreed to pay a $1.5 million penalty without admitting or denying the SEC’s findings. Furthermore, the company consented to a cease-and-desist order prohibiting future violations of the registration provisions of the Securities Act of 1933.Parallel to the SEC settlement, Tradestation also agreed to pay an additional $1.5 million to settle similar charges by state regulatory authorities coordinated through the North American Securities Administrators Association (NASAA).Tradestation Crypto’s decision to offer and sell the unregistered product came to a halt on Jun. 30, 2022, when the company voluntarily ceased its crypto lending program. Additionally, earlier this year, Tradestation announced plans to terminate all its crypto-related products and services in the U.S. by Feb. 22, further distancing itself from the practices that led to the regulatory scrutiny.This case showcases the ongoing challenges and regulatory focus in the United States. The SEC and state regulators continue to emphasize the importance of compliance with securities laws to protect investors from potential risks associated with crypto asset investments.The settlement also reflects the broader trend of regulatory agencies taking decisive actions against firms in the crypto space that fail to adhere to securities laws.Tradestation Crypto is a subsidiary of Monex Group, a Japanese finance entity that has shown a keen interest in the cryptocurrency sector, including plans to list its Coincheck cryptocurrency exchange in the U.S. Nasdaq stock exchange. The settlement is an important moment for Tradestation and serves as a cautionary tale for other crypto firms considering entering the U.S. market.#sanor016CommUNITY #sanor016CommUNIT #sanor016CommUNIY #TradeStation
- The Securities and Exchange Commission (SEC) has charged TradeStation Crypto with the unregistered offer and sale of a crypto lending product.
- TradeStation voluntarily stopped offering the interest feature on June 30, 2022, and plans to terminate all its crypto-related products and services in the U.S. market on February 22, 2024.
- TradeStation will pay $1.5 million to the SEC as part of the settlement.
- In a separate multi-state settlement, TradeStation will pay another $1.5 million to eight states, including California, Mississippi, North Carolina, Ohio, and South Carolina.
- The SEC alleges that TradeStation offered and sold a crypto lending product in 2020 without proper registration.
- TradeStation marketed the interest feature as a way for investors to earn interest on their crypto assets.
- Investors passively earned interest on crypto assets by loaning them to TradeStation, which had total control over the revenue-generating activities.
- TradeStation had discretion over how to deploy the assets to generate revenue to pay interest to investors.
- The SEC found that TradeStation's crypto lending product with the interest feature qualified as a security and required registration, which TradeStation failed to do.
- Stacy Bogert, associate director of the SEC's Division of Enforcement, emphasized the importance of ensuring that investors benefit from the disclosure requirements provided by federal securities laws.
#TradeStation #BTCBefore2025
- TradeStation voluntarily stopped offering the interest feature on June 30, 2022, and plans to terminate all its crypto-related products and services in the U.S. market on February 22, 2024.
- TradeStation will pay $1.5 million to the SEC as part of the settlement.
- In a separate multi-state settlement, TradeStation will pay another $1.5 million to eight states, including California, Mississippi, North Carolina, Ohio, and South Carolina.
- The SEC alleges that TradeStation offered and sold a crypto lending product in 2020 without proper registration.
- TradeStation marketed the interest feature as a way for investors to earn interest on their crypto assets.
- Investors passively earned interest on crypto assets by loaning them to TradeStation, which had total control over the revenue-generating activities.
- TradeStation had discretion over how to deploy the assets to generate revenue to pay interest to investors.
- The SEC found that TradeStation's crypto lending product with the interest feature qualified as a security and required registration, which TradeStation failed to do.
- Stacy Bogert, associate director of the SEC's Division of Enforcement, emphasized the importance of ensuring that investors benefit from the disclosure requirements provided by federal securities laws.
#TradeStation #BTCBefore2025