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Celsius rolls back crypto yields in the U.S.

Apr 14, 2022
Illustration of a gavel resting on a base made from bitcoin.

Illustration: Rae Cook/Axios

Crypto lender Celsius Network is rolling back its high yield product for most users starting Friday.

Why it matters: The move signals some kind of settlement or conclusion to the SEC's probe into whether its product is a security will come soon.

Details: In response to talks with regulators stateside, Celsius says it changed its product so that non-accredited U.S. customers will no longer be able to earn a yield starting Friday.

  • "We have been in ongoing discussions with United States regulators regarding our Earn product," Celsius disclosed in a blog post this week. "As a result, there will be changes to the way our Earn product will work for users based in the United States."

Background: The announcement heavily echoes the changes crypto company BlockFi agreed to make earlier this year upon settling a similar case with the commission.

  • BlockFi also stopped new customers from opening new accounts with the company, though it continued to service old accounts.

Between the lines: If BlockFi's settlement is a crystal ball of sorts into potential action against Celsius, then more news could come soon.

  • BlockFi paid about $100 million to settle allegations that it illegally offered a product violating securities law.
  • BlockFi also said it would register its yield product with the SEC.
  • "We will continue to provide updates as we engage with regulators and ensure the delivery of our services to our users globally," the Celsius blog post read.
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