As per the latest reports, a request for a hearing has been filed by the Texas State Securities Board against the Celsius Network. It is being speculated that the request filed by the authority from the Texas State is to acquire a cease and desist order again Celsius Network. Celsius Network is prominently known as a leading firm for the cryptocurrency sector.
The request filed by the regulatory authority is almost similar to what the Securities and Exchange Commission (SEC) had filed against Ripple. In the complaint, the Securities Board in the Texas State has alleged Celsius Network of being involved in the illegal soliciting of its securities.
The regulator had claimed that the Celsius Network did not acquire any proper licensing prior to the soliciting and selling of its securities to American citizens.
The Securities Board from the Texas State is not the only authority that has reacted against the Celsius Network. The New Jersey Bureau of Securities has also reacted against the Celsius Network, issuing its own order against the protocol.
The reports suggest that the New Jersey Bureau of Securities has recently issued an order for the Celsius Network. In the order, it has strictly prohibited the network to offer or sell any kinds of products that are launched with aims to earn interest.
The source reveals that an appeal against the Celsius Network has been filed by the Texas Securities Regulator on September 17. It has been confirmed that a hearing will be held against the Celsius Network, where the Texas regulator will be imposing allegations against it. The allegations would indeed be against the network for selling illegal securities and services in the state as well as the United States.
The regulator is going to impose allegations that the Celsius Network dealt with illegal and unregistered selling of securities to the locals. The platform continued doing it even though it was not registered as a dealer in the United States. By doing so, the Celsius Network has proceeded with breaching the Securities Act of the Texas State.
At the hearing, the regulator will be presenting its evidence against the Celsius Network to convince the judge about the network’s illegal conduct. If the judge decides in favor of the regulator, the Celsius Network will be issued with the same order in Texas as New Jersey.
Although the Texas State has adopted a streamlined approach against the Celsius Network, the New Jersey State has gone with a direct approach. It has clearly stated that the network is not allowed to operate in the state and has been issued for that as well.
The Securities regulator from New Jersey has revealed that from the sales of the unregistered securities, the Celsius Network successfully generated $14 billion worth of gains.