The Securities and Exchange Commission’s recent charge against cryptocurrency exchange Gemini and crypto firm Genesis over a lending product is another warning shot to the industry on yield-bearing accounts.

The U.S. regulator charged Gemini and Genesis Jan. 12 for the unregistered offer and sale of securities to retail investors through a Gemini crypto lending program. That program has been the subject of a public feud between Gemini’s Cameron and Tyler Winklevoss and the head of Genesis’ Digital Currency Group, Barry Silbert.  

“It creates a warning signal for other exchanges and actors in the crypto space that are also offering yield bearing products, which is quite frankly a lot of the exchanges,” said Alex More, a partner at Carrington, Coleman, Sloman & Blumenthal who focuses on digital assets.