SEC bars Envi operator Tyler MacKechnie over unregistered brokerage

What changed

The SEC settled proceedings against Tyler MacKechnie for unregistered brokerage through Envi, whose customers funded trading accounts with Bitcoin or other crypto assets. The order finds brokerage activity in stock-based CFDs constituting security-based swaps and imposes a cease-and-desist order, an association bar with a right to apply for reentry after two years, and an $85,000 penalty payable in installments. MacKechnie did not admit the findings except jurisdiction and the limited bankruptcy-discharge provision. The order's securities classification concerns stock-based swaps rather than every crypto product offered by Envi.

Who it affects

• Tyler MacKechnie
• Firms considering association with MacKechnie
• Advisers evaluating crypto-funded CFD platforms and customer withdrawals

What is still open

• Whether MacKechnie will seek or receive reentry approval
• Custody and regulatory responsibilities in other white-label platform structures

What it means for an advisor

• Update association and promoter screening for MacKechnie
• Verify registration and product access before recommending crypto-funded trading arrangements
• Document customer-asset control and withdrawal responsibilities across service providers