State officials, including those in New Jersey, Texas, Alabama, Vermont, Kentucky and Washington, have brought several enforcement actions against Celsius, BlockFi or both and threatened to ban them from doing business. Chair Gary Gensler has repeatedly said he believes many crypto firms are selling products that should be registered with the agency - and has urged firms to come speak with the watchdog about how they should be regulated. a letter warning the company would be sued if it moved forward with a lending product, and the company later tabled its plans. The SEC last year sent Coinbase Global Inc. New York-based Voyager, which also runs an exchange and had $7 billion in assets under management in November, is listed on the Toronto Stock Exchange and had a market value of about C$1.7 billion ($1.35 billion) as of mid-day Wednesday. The firm’s “Gemini Earn” crypto accounts pay interest of as much as 8.05%, which the firm says it earns by partnering with third party borrowers whose risk it vets. Gemini’s crypto exchange was launched in 2015 by Cameron and Tyler Winklevoss, the twins who famously feuded with Mark Zuckerberg over the founding of Meta Platform Inc.’s Facebook. Unlike bank deposits, the crypto accounts aren’t federally insured, meaning investors can lose their principal. The difference is these firms offer rates on many tokens of 3% to as high as 18%, paid in digital coins, compared to the average bank savings account that yields 0.06%. The accounts look a lot like traditional banking, where firms take deposits and pay interest. An SEC spokeswoman declined to comment.Ĭrypto lenders say they’ve collected more than $40 billion in deposits. The SEC hasn’t accused Gemini, Celsius or Voyager of any wrongdoing and not all agency queries lead to enforcement actions. The regulatory environment is evolving rapidly and “it’s normal for financial services companies, digital asset related or otherwise, to be in ongoing dialog with regulators,” Voyager spokesman Mike Legg said. and globally to operate in full compliance with the law.” “We always have, and will continue to, work with regulators in the U.S. “All discussions with regulators are confidential,” said Bethany Davis, a spokeswoman for Celsius. This advertisement has not loaded yet, but your article continues below.
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