Kentucky, the Last State Remaining to Resist Voyager’s Earn Program
The bluegrass state still ain’t greener for Voyager Digital Ltd. (TSX: VOYG) as Kentucky remains the only US state not to allow the company to continue its Earn program.
On March 29, the crypto platform received cease and desist orders from the respective member state securities divisions of the North American Securities Administrators Association. The orders ordered the company to cease operating its Earn program and to refrain from offering more authorized accounts to earn on assets, as these are considered securities or investment contracts – for which the company does not have a trading licence.
Cease and desist orders came from the Indiana, Kentucky, New Jersey and Oklahoma securities branch. The company has also received demo orders from Alabama, Texas, Vermont and Washington, as well as similar mode orders from California and South Carolina.
Since then, Voyager has been in discussions with the respective regulators in said states to “better understand the terms of their respective regulatory orders.” At the same time, it intends to demonstrate and defend that the program is not titles.
Some orders are also subject to civil penalties, which the firm also intends to specify the terms and calculations.
As the company announced Thursday, only Kentucky has not moved to allow the Voyager Earn program to continue.
“It is encouraging that all states except Kentucky have allowed Voyager to continue operating the Voyager Earn program,” said CEO Stephen Ehrlich.
The crypto platform allows its customers to earn more crypto assets by holding a set minimum balance for each token, similar to how an interest rate would work on a bank account. The “reward” is calculated based on a set percentage which differs for each coin, having the potential to earn more if one holds more assets in the account.
But unlike fiat currency in a bank, the value of crypto assets changes with the market, opening up the case for viewing these financial derivatives as securities.
Seemingly juxtaposing these developments, the company launched its “Crypto for All” campaign, featuring its own customers from diverse backgrounds talking about their crypto experiences.
Erlich said he hopes an “acceptable way forward can be agreed upon” so that his customers can still be “rewarded for their loyalty…in these times of inflation.”
Voyager Digital Ltd. last traded at $2.68 on the TSX.
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