Around the PIA Western Alliance States – Week of February 12, 2024

Oregon — Oregon joins 25 other states, SEC in $3 million settlement with TradeStation crypto program: The Oregon Division of Financial Regulation (DFR), along with a taskforce of state securities regulators, and the U.S. Securities and Exchange Commission (SEC) announced a $3 million settlement in principle with TradeStation Crypto, Inc. over its unregistered crypto interest earning program. The settlement resolves allegations that TradeStation violated state and federal securities laws by offering and selling securities without proper registration or disclosure to investors.

The settlement stems from a comprehensive investigation led by state securities regulators in Alabama, California Mississippi, North Carolina, Ohio, South Carolina, Washington, and Wisconsin and coordinated under the auspices of the North American Securities Administrators Association (NASAA) enforcement section committee.

“This settlement sends a clear message that crypto-related businesses must comply with state securities laws or face serious consequences,” said DFR Administrator TK Keen. “DFR is committed to protecting investors and the integrity of the financial markets from those who do not comply with our requirements.”

TradeStation, a Florida corporation formed in 2018, provides crypto-asset-related financial services to retail and institutional customers in the U.S., including investing and trading services. From around August 2020 to June 2022, TradeStation offered a crypto interest earning program to U.S. investors. Under this program, investors could passively earn interest on crypto assets by loaning them to TradeStation. TradeStation maintained total discretion over the revenue-generating activities utilized to earn returns for investors. The company offered and promoted its crypto interest earning program in the U.S. via its website and various platforms.

TradeStation is alleged to have failed to comply with state registration requirements and, as a result, investors were sold unregistered securities in violation of state laws and additionally were deprived of critical information and disclosures necessary to understand the potential risks of TradeStation’s crypto interest earning program.

For the states participating in the settlement, TradeStation will pay a fine of $29,411.76 each and cease offering, selling, or renewing its crypto interest earning program until such activities are compliant with applicable state and federal securities laws. TradeStation has repaid investors, including interest and earnings.

DFR urges investors to exercise caution when dealing with crypto-related businesses and to report any suspicious activities to one of our consumer advocates, who can be reached at 888-877-4894 (toll-free) or dfr.fiancialserviceshelp@dcbs.oregon.gov.

Oregon — New Chief Examiner: I am pleased to announce that Teresa Borrowman is the new chief examiner for the Division of Financial Regulation (DFR), effective Jan. 31, 2024.

In her role, she oversees the examination process and calendar for the division’s financial examinations of domestic insurers, leads staff training of current financial standards to ensure quality and rigor of examinations, serves as a member of several National Association of Insurance Commissioner (NAIC) committees that set national standards for financial supervision and regulation, and makes recommendations to the DFR leadership team and insurance commissioner, among other duties.

Teresa has been with the division for almost eight years, with the past year-and-a-half in the role of lead financial analyst. Before coming to Oregon, Teresa worked with the Utah Insurance Department as an insurance financial analyst for eight years. She holds a bachelor of science in accounting from the University of Phoenix and has PIR and CFE designations.

Teresa can be reached at 971-701-0557 or teresa.l.borrowman@dcbs.oregon.gov.

Kind regards,

Andrew R. Stolfi

Insurance commissioner and director

Oregon Department of Consumer and Business Services

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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