- Reasons for Revocation
- Impact on the Company
- Settlement Details
The U.S. Securities and Exchange Commission (SEC) has decided to revoke the securities registration of Salt Blockchain Inc, a Delaware-based cryptocurrency lender.
Reasons for Revocation
The decision, which comes into effect immediately, was taken due to the company's failure to comply with basic legal requirements. Salt Blockchain had failed to file required reports with the SEC since December 2021 and violated several rules under the Securities Exchange Act of 1934.
Impact on the Company
The SEC deemed it necessary to revoke the company’s registration to protect investors. This action follows a settlement agreement Salt Blockchain reached with the SEC, in which the company consented to the revocation of its securities registration, though it did not admit or deny the SEC’s findings.
Settlement Details
In the company's previous settlement details, the SEC said the token was considered a security because Salt told investors they could expect to receive a return on their investment. Salt agreed to settle the lawsuit and paid the SEC $250,000 in damages within 10 days.
This decision marks a significant step in the SEC’s dealings with cryptocurrency companies, emphasizing the necessity for regulatory compliance.
