TradeStation Crypto reaches $3m settlement for offering unregistered interest product
TradeStation Crypto, a digital asset trading platform, has agreed to pay a settlement of $3 million for offering an unregistered interest product to its customers. This announcement comes as the company made the decision to resolve allegations made by the U.S. Commodity Futures Trading Commission (CFTC).
The CFTC claimed that TradeStation Crypto had committed various violations by offering interest on customers’ holdings of cryptocurrencies, without registering the product as required by the federal securities laws. According to the CFTC, this action classified the interest product as a security futures contract.
As part of the settlement, TradeStation Crypto has agreed to cease and desist from any further violations of the Commodity Exchange Act and will pay a civil monetary penalty of $3 million. The company has also agreed to take necessary steps to ensure compliance with the applicable laws and regulations.
Offering unregistered interest products within the cryptocurrency industry has been a concern for regulators, as it can pose potential risks to investors. The CFTC’s action against TradeStation Crypto demonstrates their commitment to enforcing regulations and ensuring the protection of investors in the digital asset market.
TradeStation Crypto, a subsidiary of TradeStation Group, is a platform that offers trading services for various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. The platform allows customers to trade cryptocurrencies while providing a range of other services, such as custody, hot and cold wallets, and staking.
