Starting July 1, Celsius can convert altcoins to BTC and ETH after SEC discussions.

Celsius has been granted permission to begin liquidating its altcoins. The bankrupt crypto lender will distribute the proceeds solely in bitcoin (BTC) and ether (ETH), the two most widely used cryptocurrencies.

This move was approved by Bankruptcy Judge Martin Glenn of the Southern District of New York. Celsius proposed the distribution plan after discussions with the Securities and Exchange Commission (SEC). The SEC has recently stated that certain less-used crypto tokens are considered securities and require regulatory approval.

According to Judge Glenn’s ruling, Celsius is allowed to sell or convert any non-BTC and non-ETH cryptocurrencies, crypto tokens, or other cryptocurrency assets associated with Withhold or Custody accounts into BTC or ETH starting on or after July 1, 2023.

The company has been in regular discussions with the SEC and state regulatory agencies to ensure that the proposed cryptocurrency distribution plan is fully compliant with federal and state laws and regulations.

Celsius, which collapsed in July 2022 and was approved for sale to crypto consortium Fahrenheit in May, is preparing an updated bankruptcy plan. This plan will generally only involve distributing BTC or ETH to creditors, with limited exceptions.

The SEC has recently taken action against major crypto exchanges like Coinbase, Binance, and Bittrex, claiming that tokens associated with Polygon (MATIC), Near (NEAR), and Cardano (ADA) should be regulated as securities.

The SEC’s claims caused delays in the wind-down process of bankrupt crypto lender Voyager. The SEC argued that Voyager’s VGX token could be considered a security. Binance.US, which had offered to purchase Voyager’s assets, subsequently withdrew its offer due to the resulting delays.

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