Home News Texas and New Jersey regulators go after Celsius Network

Texas and New Jersey regulators go after Celsius Network

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The Texas State Securities Board (TSSB) has accused the Celsius Network cryptocurrency lending service of selling unregistered securities. The document stated this.

TSSB demanded that representatives of the service appear at the hearing. Thus, the hearing in the video conference format will occur on February 14, 2022. On this day, the issue of the termination of the activity of the Celsius network will be resolved.

Enforcement Director of TSSB Joseph Rotunda confirmed that the charges are related to the sale of securities “without prior compliance with important laws aimed at protecting investors.”

Termination of unregistered securities sales

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“I recognize that digital assets and blockchain technology open the way to exciting new opportunities and new financial services. We are just trying to bring [the activities of] Celsius into compliance with the law so that it can continue to operate legally,” the head of TSSB said.

The financial regulator of New Jersey has demanded that the Celsius Network stop selling unregistered securities in the state.

“If you are selling securities in New Jersey, you need to comply with the state’s securities laws. And that [requirement] includes those operating in the cryptocurrency market,” wrote Acting Attorney General of New Jersey Andrew Bruck.

BlockFi

Earlier, the state regulator filed similar charges against the BlockFi crypto-landing platform. Financial regulators in Vermont, New Jersey and Alabama also checked the legality of the BlockFi Interest Account (BIA) savings account offer.

Recall that BlockFi CEO Zach Prince expressed confidence that crypto lending services will survive despite regulatory pressure at the state level.

“We are not going to decide what type of lending credit services belong to based on what New Jersey or Texas do. It all depends on federal regulatory authorities. Such as the SEC or OCC, which will pave the way for this type of activity”. Prince said during the SALT conference organized by SkyBridge Capital.

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