TradeStation Crypto Agrees to $3 Million Settlement with SEC and State Regulators Over Unregistered Securities

TradeStation Crypto, the digital asset trading platform, has consented to a $3 million settlement with both the U.S. Securities and Exchange Commission (SEC) and various state regulatory bodies. The settlement addresses accusations that TradeStation offered and sold securities that were not properly registered under U.S. securities laws, through its crypto lending and interest-earning program.

Details of the SEC Allegation

According to the SEC, TradeStation did not fulfill the necessary requirements to register its crypto lending product, which promised returns to U.S. investors who deposited or bought digital assets on their platform. This offering commenced in the year 2020 and remained available until it was discontinued in 2022. The SEC emphasized the imperativeness of compliance with registration provisions intended to provide transparency and protect investors in the evolving crypto market landscape.

The Aftermath of the Settlement for TradeStation

While agreeing to the settlement, TradeStation has not admitted to or denied the SEC allegations. However, the $3 million payment is expected to close the chapter on these regulatory concerns. TradeStation's commitment to the pact signifies a broader movement in the crypto trading industry, as platforms increasingly navigate the complex web of financial regulations to legitimately operate and ensure investor protection within U.S. jurisdiction.

TradeStation, SEC, settlement