Coinbase Inc., one of the leading exchanges in the United States. It was recently warned by the Securities and Exchange Commission (SEC) that it could face legal problems. An unreleased stablecoin lending service offered by Coinbase is illegal according to the SEC.
Coinbase announced that the SEC has not been able to give any clear answer to its parties on this issue for more than six months. Celsius, a different exchange offering a Coinbase-like service, may be subject to investigation by the SEC.
After months of trying to engage with the @SECGov on our planned Coinbase Lend product, we recently received notice that it intends to pursue legal action against us. We believe dialogue is at the heart of good regulation, even if the SEC may not. https://t.co/OumvyTPQdj
— Coinbase (@coinbase) September 8, 2021
According to a filing released Sept. 16, the Alabama Securities office has requested a response from Celsius, the popular cryptocurrency lending exchange in the US. According to that file, he explained to Celsius that he awaits defense as to why their proposals do not violate state security laws.
The popular Celsius exchange in the USA is alleged by state officials of Texas, New Jersey and Alaba to violate the law through the “Win A Prize” program offered by Celsius Network. The state of New Jersey will demand an immediate cessation of interest account transactions, while the state of Texas will discuss whether to stop these transactions in February. The state of Alabama is requesting a defense from Celsius within four weeks. If the company does not respond, it will be sanctioned by the state of Alaba.
Explanation from Celsius
In a statement made by Celsius, it was stated that the allegations that the company did not comply with the law were not true and all claims were denied. “We have acted in harmony with regulatory bodies in the US and around the world from the very beginning to ensure that the services we provide comply with the law, and we will continue to act from now on. Given our commitment to the law from the very beginning, we look forward to handling these allegations as quickly as possible. Currently, there are no changes to our services that affect our customers. We will continue to share the developments with you”