Celsius rolls back crypto yields in the U.S.
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.