Overview
- TradeStation Crypto, Inc. has agreed to pay $3 million in penalties to settle charges with the SEC and state authorities over its unregistered crypto lending product.
- The SEC found that TradeStation offered and sold the crypto lending product as a security without the necessary registration, starting in August 2020.
- TradeStation voluntarily ceased offering the interest feature of its crypto lending product on June 30, 2022, and plans to discontinue all crypto-related products and services in the U.S. by February 22, 2024.
- The settlement includes a $1.5 million penalty to the SEC and an equal amount to settle similar charges brought by state regulatory authorities.
- The case underscores the importance of compliance with federal securities laws and the need for investor protection through disclosure requirements.