Kentucky, The Last Remaining State To Hold Out Against Voyager’s Earn Program
The bluegrass state is still not greener for Voyager Digital Ltd. (TSX: VOYG) as Kentucky remains the only US state not allowing the firm to continue operating its Earn Program.
On March 29, the crypto platform received cease and desist orders from the respective state securities divisions of member states of the North American Securities Administrators Association. The orders were directing the firm to stop operating its Earn Program and refrain from further offering accounts that are allowed to earn on assets as these are deemed securities or investment contracts–for which the firm has no license to trade.
The cease and desist orders came from the securities arm of Indiana, Kentucky, New Jersey, and Oklahoma. The firm also received show-cause orders from Alabama, Texas, Vermont, and Washington, as well as orders of similar fashion from California and South Carolina.
Since then, Voyager has been in talks with the respective regulatory bodies of the said states to “better understand the terms in their respective regulatory orders.” Alongside, it intends to demonstrate and defend that the program is not securities.
Some of the orders also carry civil penalties, which the firm also intends to clarify the terms and calculations.
As the firm announced on Thursday, only Kentucky has not budged to allow the Voyager Earn Program to continue.
“It is encouraging that all states, other than Kentucky, have allowed Voyager to continue to operate 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 in a bank account. The “reward” is calculated based on a set percentage that differs for every coin, having the potential to earn more if one holds more assets in the account.
But unlike fiat money in a bank, the value of the crypto assets changes with the market, opening the argument to consider these financial derivatives as securities.
Seemingly juxtaposing these developments, the firm launched its “Crypto for All” campaign, featuring its own clients from a variety of backgrounds talking about their crypto experiences.
Erlich said he is hopeful that an “acceptable path forward can be agreed upon” so that its clients can still be “rewarded for their loyalty… in these inflationary times.”
Voyager Digital Ltd. last traded at $2.68 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
