The charges allege that TradeStation offered and sold unregistered securities through an interest-earning program.
According to the SEC, TradeStation failed to properly register its crypto lending product, which allowed investors in the United States to deposit or purchase assets on TradeStation's platform in anticipation of earning a return. This program was offered to customers starting in 2020 and continued until it was discontinued in 2022.
The settlement comes as part of the SEC's broader effort to ensure compliance with federal securities laws in the rapidly evolving cryptoasset space. The resolution of these charges highlights the importance of registration requirements and the SEC's commitment to enforce them to protect investors.
TradeStation had not made any public statements regarding the settlement at the time of reporting.
