Celsius Network has announced that it will discontinue its Celsius Earn product for non-accredited U.S. investors, effective immediately.
This change comes as the Securities and Exchange Commission (SEC) has increasingly taken action against companies offering digital assets that may be considered securities, including so-called "initial coin offerings" (ICOs). In November 2022, the SEC issued a cease-and-desist order against Celsius Network, finding that the company's sale of digital tokens was an unregistered securities offering.
As a result of the SEC's actions, Celsius Network has decided to exit the U.S. market for its Celsius Earn product. Non-accredited U.S. investors who have already invested in the product will be able to withdraw their funds, but will not be able to earn any more interest on their investment.
Celsius Network's decision to exit the U.S. market is a blow to the growing industry of digital asset lending and borrowing platforms. These platforms have been seen as a way for investors to earn yield on their digital assets, without having to sell them.
The SEC's actions against Celsius Network, however, illustrate the risks associated with investing in digital assets that may be considered securities. Investors should always consult with a financial advisor before investing in any digital asset.
What do you think about Celsius Network's decision to exit the U.S. market for its Celsius Earn product? Let us know in the comments below.