Kentucky Joins Clampdown On Celsius' Crypto Accounts

By Elise Hansen (September 24, 2021, 8:17 PM EDT) -- Kentucky has ordered digital asset company Celsius to stop offering interest-bearing cryptocurrency accounts, becoming the latest state to flag the product as a security amid wider scrutiny of cryptocurrency lending products.

Kentucky's Department of Financial Institutions on Thursday issued an emergency cease-and-desist order against Celsius Network LLC, requiring it to stop soliciting or selling any unregistered security in the state. The department argued New Jersey-headquartered Celsius' "Earn Interest Accounts" are investment contracts and fall under state securities law.

The accounts allow individuals or businesses to deposit various digital assets, which Celsius then pools to fund activities such as trading, lending, cryptocurrency...

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