Texas, Vermont regulators object to Celsius stablecoin plan | The Financial Express

Texas, Vermont regulators object to Celsius stablecoin plan

SBB, the Texas Department of Banking, and the Vermont Department of Banking all objected to the relocation.

Texas, Vermont regulators object to Celsius stablecoin plan
Separate papers filed on September 29 by both agencies allege that there is a possibility that the firm may use the funds to resume operations in contravention of state rules.

Texas and Vermont state authorities have filed a motion opposing beleaguered crypto lender Celsius’ plans to sell off its stablecoin assets, as reported by Cointelegraph.

Separate papers filed on September 29 by both agencies allege that there is a possibility that the firm may use the funds to resume operations in contravention of state rules.

The documents follow a September 15 notification by Celsius’ legal team requesting authorisation from the United States Bankruptcy Court for the Southern District of New York to sell its stablecoin assets, which are allegedly worth roughly $23 million. On October 6, a hearing to accept or deny the motion will be held.

However, the Texas State Securities Board (SBB), the Texas Department of Banking, and the Vermont Department of Banking all objected to the relocation. 

As reported by Cointelegraph, in a combined filing, the two Texas regulators stated that “more than 40 states” are actively investigating Celsius’ pre-bankruptcy operations in regard to probable unregistered securities offers. Texas regulators are also concerned that if Celsius sells its shares, it will resume non-compliant sales in the state because it is still not registered with the Texas SBB. Simultaneously, the Vermont regulator raised similar issues in its own complaint. One major source of concern among authorities is that the company has not expressly stated what it will do with the proceeds after selling the stablecoins.

(With insights from Cointelegraph)

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