Earlier this year, cryptocurrency platforms BlockFi began to face heat from state regulators in New Jersey, Texas and Alabama. Other states have since joined the fold. Celsius is now facing the same state this week and BlockFi has refrained from claiming three of the three states it faced.
Let’s take a look at what we know so far and what it might mean for DFI to move forward.
Regulators arrive: Celsius is what the key is facing
It is quickly becoming clear that Celsius is joining the fight facing regulators in the same vein that BlockFi has. On Friday, Texas officials rescinded the ceasefire and order against Celsius. For filing, the state of Celsius must show why residents of the state should not be ordered to stop supplying goods. Celsius, such as BlockFi, faces allegations that it is offering residents unregistered securities. The Texas hearing will be held on February 2.
Both Alabama and New Jersey have apparently issued similar on the same day. New Jersey instructs the platform to stop delivering selected products by November 1.
A Celsius representative told Bloomberg that the company is disappointed that these steps have been filed and does not sincerely agree with the allegation that Celsius is not complying with the law, adding that the platform will not bring immediate changes to services for customers.
Celsius' native platform token, CEL, offers more aggressive yield rates - but is not currently offered in the U.S. | Source: CEL-USD on TradingView.com
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Defy’s climbing battle
The news comes just weeks after Coinbase published a blog post about the upcoming lawsuit from the SEC, assuming Coinbase has moved on with its expected ndn product. Coinbase has since applied for a National Futures Association license. It remains to be seen what happens to the land product and the SEC.
Meanwhile, Celsius has become DFI in the word nyly. The cryptocurrency and interest-accounting platform holds more than 24 24 billion in community assets, making it the largest যদি if not the largest. It remains to be seen what action is being taken in the respective states for Celsius customers, and BlockFi could go on to become a case study. However, it is not too much to set a precedent for what we have seen so far from blockchain and regulators. So far, across the handful of states, only new account registration has been restricted. Prior to the regulatory action, blockchain had no effect on customers.
To this day, consumers have largely been left in the dark as to what kind of impact can be seen here. In this situation the optimist can say that these actions can lead to control which establishes good practice and structure for cryptocurrency giving platforms. However, the pessimistic outlook will lead to the belief that more states may join the position and that DFI may face increased pressure from regulators due to its impact on traditional traditional banking institutions.
Either way, it’s hard to believe that consumer protection is paramount through these individual state regulators. It remains to be seen which way it will go from here.
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