Des Moines - The State of Iowa entered into a settlement with TradeStation Crypto, Inc. (TradeStation) to resolve a multi-state securities investigation into TradeStation’s crypto interest-earning program.

“Whatever Iowans may be looking to invest in, it’s always important for them to be vigilant and protect their assets,” Commissioner Doug Ommen said. “Iowans can always double-check before investing to make sure an investment is properly registered with the Iowa Insurance Division by calling 877-955-1212.”

TradeStation, a Florida corporation formed in 2018, provides crypto-asset-related financial services to retail and institutional customers in the United States, including investing and trading services. From approximately August 2020 until June 2022, TradeStation offered a crypto interest-earning program to Iowa investors. Under this program, investors passively earned 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 their crypto interest-earning program in Iowa and the United States at large via its website and various platforms.

The $1.5 million multistate settlement, on behalf of 51 United States jurisdictions, is the result of a North American Securities Administrators Association task force of eight state securities regulators from Alabama, California, Mississippi, North Carolina, Ohio, South Carolina, Washington, and Wisconsin. The task force determined that during the offering period, TradeStation engaged in the unregistered offer and sale of securities via its crypto interest-earning program.