The United States Securities and Exchange Commission (SEC) said it is under scrutiny some of the high-yield loan products offered by Gemini, Celsius Network and Voyager Digital.
by Bloomberg January 26 The SEC is conducting an investigation into services for lending interest on digital assets. The main purpose of the investigation is thought to be whether crypto loan services should be recorded in the exchange commission as it is unclear whether they can be considered securities.
SEC, traditional banks from 0.1% even with low interest rates 3% to 18% He stated that he is concerned about crypto money exchanges that offer interest rates ranging from .
Since traditional banks are insured by the Federal Deposit Insurance Corporation, investors’ money is protected even if the bank goes bankrupt. Crypto loan services lend customers’ digital assets to other investors, which means that the investor is not protected, according to the SEC. In addition, the SEC does not allow any companies to did not accuse stated.
Crypto loan services are said to have come under pressure from US regulations since September of 2021. Regulators in the state of New Jersey and Texas have ordered them to cease lending service against the Celcius Network. ordered.