The US Securities and Exchange Commission (SEC) has announced it will soon analyze the activities of popular cryptocurrency exchanges Gemini and Celsius. According to the announcement, the attention of the experts of the regulator will be focused on the lending services provided by the platforms.
The regulator reportedly obtained information about the very high interest rate offered by the above exchanges when issuing crypto loans.
The SEC wants to check the veracity of the information received to take appropriate action. The story is that crypto loans issued by companies are not insured in any way, unlike loans issued by traditional banking institutions. As a result, a user who has borrowed in digital assets is at risk.
At the moment, the regulator has not accused the platforms. However, the SEC has noted that if the data it received turns out to be reliable, the regulator will have to take measures.