SEC v. TradeStation Crypto

The SEC charged TradeStation Crypto, Inc., based in Plantation, Florida, for failing to register the offer and sale of a crypto lending product that allowed U.S. investors to deposit or purchase crypto assets in exchange for interest payments, marketed as a way to “put your crypto assets to work for you.” The product, offered since August 2020, was deemed a security, and TradeStation did not qualify for a registration exemption, violating the Securities Act of 1933. TradeStation voluntarily stopped offering the product on June 30, 2022, and announced plans to terminate all crypto-related products in the U.S. by February 22, 2024. TradeStation settled the charges, agreeing to a $1.5 million penalty and a cease-and-desist order. Parallel state regulatory actions resulted in an additional $1.5 million in fines.