The Alabama securities regulator on Thursday issued a show cause order in Celsius, asking the cryptocurrency lending platform to explain why its offers do not constitute a sale of securities under the law. of State.
The order precedes actions by Texas and New Jersey, which decided Friday to launch administrative actions against Celsius – in the case of New Jersey, a ceasefire has been issued. CoinDesk reported on Alabama’s vindication order on Friday evening.
According to the order, “[t]The investment programs, identified as Celsius Earn Reward, constitute the solicitation of an investment of money; from which a return on investment is expected; with such a return on investment based on the management efforts of [Celsius]. The Solicited Investments, identified as the âCelsius Rewards Programâ, constitute an âinvestment contrastâ and are securities under the Securities Act. “
As a result, the Alabama Securities Commission asked Celsius to “demonstrate compliance with the registration provisions of the law or demonstrate why such instruments should not be subject to registration.”
In a Friday session, ask me anything, Celsius CEO Alex Mashinsky said he hopes to work with regulators to explain the nature of the crypto lender’s business.