In the Cross Hairs. Yesterday, Voyager reported that is aware of or had received cease and desist orders from a number of states in respect to Voyager accounts that permit customers to earn rewards on their crypto balances. The actions by the states appears to be similar to what happened to Blockfi in February this year.Voyager Response. The Company stated, "Voyager is firmly convinced that its Earn Program and the Voyager Earn Accounts are not securities and intends to demonstrate its position and defend it as necessary and appropriate." Voyager is seeking clarification of the terms of each of these regulatory orders, including effective dates and how proposed civil penalties in respect of alleged violations are calculated and its due process rights.A Speed Bump. While not optimal, we believe yesterday's news is more of a near-term speed bump that does not fundamentally alter the investment prospects for Voyager. If this case proceeds as the Blockfi one, it will have no impact on existing customers as they will still be able to participate in the rewards program. There likely will be an impact on attracting new customers as the high interest arrow will be removed from the quiver but the Company has been diversifying its revenue streams and has other means of attracting new customers.White Linings? Yesterday's announcement should give Voyager a seat at the table to help shape thoughtful regulation of the industry, which we believe to be a positive. In addition, if Voyager cannot use the rewards program to attract customers, the costs of customer acquisition can either be re-purposed to other marketing avenues and/or drop to the bottom line, at least in the short-term.Maintaining Outperform and $15 PT. At this juncture, we believe today's announcement is an unfortunate speed bump, but it does not alter the long-term fundamentals for the Company. As such, we are maintaining our Outperform rating and our $15 12-month price target. We continue to believe Voyager is a leader in the emerging crypto space. Read More >>