Canada-listed Voyager Digital (TSX: VOYG) confirmed on Wednesday that several state regulators in the United States are scrutinizing its services for offering interest-bearing cryptocurrency accounts.
According to the cryptocurrency company, it has already received or is expecting to get cease and desist orders from the financial supervisors of Indiana, Kentucky, New Jersey and Oklahoma. Additionally, the state securities division of Alabama, Texas, Vermont and Washington have issued show-cause orders to the company.
All of these orders are asserting that Voyager Earn Accounts fall under the category of security and investment contracts, thus violating the state securities regulations.
However, Voyager is convinced that its offerings are not securities and is intending to defend its position. “Voyager supports appropriate regulation and will do its best to demonstrate to these regulators that Voyager has complied with the law,” the company stated.
Though Voyager is still seeking further clarification on all of the regulatory orders, it pointed out that a few of them would prohibit it from offering interest-bearing crypto accounts, while three of them are seeking monetary penalties.
“It is Voyager’s expectation that most of these state orders will provide a transition period prior to becoming effective,” the company added.
US Regulators against Crypto Lending Platforms
The crackdown of the US state regulators against crypto lending platforms is not new. Before, several state regulators issued similar orders against popular platforms like BlockFi and Celsius, alleging violation of state laws.
An earlier media report even revealed that the US federal financial market supervisor, the Securities and Exchange Commission, is probing the offerings of several crypto companies, including Voyager Digital.
Furthermore, BlockFi became the first of these companies to settle with these federal and state regulators, paying $100 million and agreeing to several conditions like suspension of adding new US accounts.
