Market Analysis Report (20 Sep 2021)

The Alabama Securities Commission has ordered crypto lender Celsius to explain how it is not violating state securities laws within the next four weeks.

In an order dated Sept. 16, the state regulator said it believed Celsius violated state laws through its “Earn Rewards” program. Texas and New Jersey state regulators also announced similar findings on Friday, with New Jersey filing a cease-and-desist and Texas announcing it would hold a hearing in February to determine if a cease-and-desist should be ordered.

Celsius has 28 days to respond to the Alabama regulator and show cause why the regulator should not impose a cease-and-desist order. If the company does not respond, the regulator will assume Celsius is waiving its right to a hearing and immediately move to impose sanctions.

A Celsius spokesperson told CoinDesk via email:

“We are disappointed these actions have been filed and wholeheartedly disagree with the allegations being made that Celsius has not complied with the law. We always have, and will continue to, work with regulators in the US and globally to operate in full compliance with the law. Given our commitment to regulatory adherence, we look forward to addressing this matter quickly. As of now, there are no changes in our services to any of our clients. We will keep our community updated with any development.”

Source: https://www.cryptocompare.com/email-updates/daily/2021/sep/20/