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One of the leading competitors to BlockFi, Celsius, has been ordered to halt its offering of interest-bearing accounts by New Jersey's Bureau of Securities. This comes nearly two months after New Jersey halted BlockFi from doing the same.


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Celsius has also been given a notice from the Texas State Securities Board that a hearing will take place on February 14th to determine whether the state should give the company a cease and desist order over its interest-earning crypto accounts. 

The New Jersey order claims that Celsius has been "funding its cryptocurrency lending operations and proprietary trading at least in part through the sale of unregistered securities in violation of the New Jersey Securities Law."

Recently, Coinbase was issued a Wells Notice from the SEC. A Wells Notice is a letter that informs the receiving company that an investigation has been completed and that infractions have been found.

It is still unknown what the SEC has found in order to issue the Wells Notice, but rumors have swirled that this too is related to Coinbase's Lend program which seeks to offer clients interest-earning accounts backed by cryptocurrencies. 

The SEC and various state-level securities law enforcement agencies have been cracking down on the relatively new interest-earning crypto products as of late and the implications for crypto exchanges and lenders are still unclear.

Several other companies outside of Coinbase, BlockFi and Celsius also offer these products but have yet to be issued warnings from any legal authority.