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TradeStation to pay $3 million to settle charges from SEC, states over unregistered crypto product

FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C.

(Reuters) - Cryptocurrency platform TradeStation Crypto will pay $3 million to settle charges from the U.S. securities regulator and multiple states that it offered and sold unregistered securities through an interest-earning program.

TradeStation failed to register its crypto lending product that allowed U.S. investors to deposit or purchase assets on TradeStation's platform in exchange for yield, the Securities and Exchange Commission said. The product was offered to customers beginning in 2020 and was shut down in 2022.

(Reporting by Hannah Lang in Washington; Editing by Chris Reese)