Texas and Vermont regulators oppose plan to sell Celsius stablecoin
A major concern is that the company has not explicitly stated what it will do with the proceeds from the sale of stablecoins.< /p>
Separate petitions from both regulators filed Sept. 29 argue there is a risk the company could use the capital to resume operations in violation of state laws.
The filings come after a Sept. 15 notice from Celsius's legal team asking the United States Bankruptcy Court for the Southern District of New York for permission to sell its stablecoin holdings, worth approximately $23 million. A hearing to accept or deny the motion will be held on October 6.
However, the move was not well received by the Texas State Securities Board (SBB), the Texas Department of Banking, and the Vermont Department of Financial Regulation, which filed objections on September 29.
The two Texas regulators in a joint filing noted that "more than 40 states" are currently investigating Celsius' pre-bankruptcy activities in relation to possible unregistered securities offerings.
Regulators in Texas have also highlighted concerns that if Celsius sells its holdings, the company could resume non-compliant offerings in the state, given that it is still not registered with the Texas SBB. At the same time, the Vermont regulator also highlighted similar concerns in its own objection.
One of the main concerns of regulators is that the company has not explicitly defined what it will do with the funds after selling the stablecoins.
"It is not at all clear what the debtors intend to do with the proceeds of these sales, whether the relief sought extends to Stablecoin-denominated assets such as personal loans to consumers. , and to what extent the debtors use the proceeds of the sale will be supervised by the court”, the Vermon...
A major concern is that the company has not explicitly stated what it will do with the proceeds from the sale of stablecoins.< /p>
Separate petitions from both regulators filed Sept. 29 argue there is a risk the company could use the capital to resume operations in violation of state laws.
The filings come after a Sept. 15 notice from Celsius's legal team asking the United States Bankruptcy Court for the Southern District of New York for permission to sell its stablecoin holdings, worth approximately $23 million. A hearing to accept or deny the motion will be held on October 6.
However, the move was not well received by the Texas State Securities Board (SBB), the Texas Department of Banking, and the Vermont Department of Financial Regulation, which filed objections on September 29.
The two Texas regulators in a joint filing noted that "more than 40 states" are currently investigating Celsius' pre-bankruptcy activities in relation to possible unregistered securities offerings.
Regulators in Texas have also highlighted concerns that if Celsius sells its holdings, the company could resume non-compliant offerings in the state, given that it is still not registered with the Texas SBB. At the same time, the Vermont regulator also highlighted similar concerns in its own objection.
One of the main concerns of regulators is that the company has not explicitly defined what it will do with the funds after selling the stablecoins.
"It is not at all clear what the debtors intend to do with the proceeds of these sales, whether the relief sought extends to Stablecoin-denominated assets such as personal loans to consumers. , and to what extent the debtors use the proceeds of the sale will be supervised by the court”, the Vermon...
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