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US SEC is looking into cryptocurrency firms that are offering loan services

According to Bloomberg, the US Securities and Exchange Commission (SEC) is investigating three cryptocurrency companies: Celsius Network, Voyager Digital, and Gemini Trust, as part of a larger probe into bitcoin lending platforms. According to unidentified sources, the regulator’s research is focusing on determining whether crypto lending organizations should register their products as securities.

The US Securities and Exchange Commission (SEC) has yet to charge or accuse the corporations of any wrongdoings.

Crypto lending organizations are typically run like commercial banks, accepting customers’ cryptocurrencies as deposits and paying interest on them. The deposited bitcoins are subsequently loaned to institutions to cover their crypto trading holdings by these lending organizations.

Also, Despite the fact that the crypto lending organizations are currently under federal investigation, numerous state securities regulators in the United States have already taken action against them for breaking state securities laws.

Then, New Jersey, Texas, Alabama, Kentucky, and a few other states took legal action against Celsius and BlockFi, threatening to shut down their operations. However, the US Securities and Exchange Commission (SEC) has yet to charge or accuse any of these companies of any misconduct.

The Securities and Exchange Commission has yet to confirm its current investigation.

The SEC has not confirmed its latest investigation. So, but all three corporations have stated that they are cooperating with the regulator.

A Gemini spokeswoman told the publication,

“We are one of many organizations the SEC has reached out to potential crypto yield products.”

“We are voluntarily collaborating with this industry-wide investigation.”

Celsius’ Bethany Davis noted,

“All interactions with regulators are secret.”

“We have always worked with regulators in the United States and around the world”

“to operate in complete accordance with the law, and we will continue to do so.”

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