Celsius said in a statement late Monday it had changed course after receiving “feedback” from the U.S. SEC

Crypto lender Celsius Network has cut down its post-bankruptcy business plans to focus only on bitcoin mining, citing U.S. regulators’ scepticism of its other planned business lines.

Celsius, whose restructuring plan had also envisioned the firm earning “staking” fees by validating blockchain transactions and managing its legacy portfolio of crypto currency loans, said in a statement late Monday it had changed course after receiving “feedback” from the U.S. SEC.

A U.S. bankruptcy court in Manhattan had approved Celsius’ Chapter 11 plan on November 9, clearing the firm to return crypto currency to customers and create a new firm owned by Celsius creditors.

The Securities & Exchange Commission did not definitively say during Celsius’ bankruptcy case whether the new firm’s business plans would breach U.S. law, but it reserved the right to make that determination later.

The Securities & Exchange Commission has argued in past public statements that most crypto lending and staking activity should be regulated to ensure that customers have enough information about how their crypto assets are used.

Celsius said it now plans to hold back certain assets that would have been transferred to the new firm, and instead liquidate them as a part of the wind-down of its bankruptcy.

Bitcoin mining was always meant to be the “core business” of the new firm, the crypto lender added.

The pivot has led to further discussions with Fahrenheit, a consortium of bidders selected to lead the revamped firm. The crypto lender said it expects to seek court approval of a modified bankruptcy plan in the coming weeks.

Celsius said the “reduction in scope and scale” of the new firm should lead to lower management fees and raise the amount of crypto currency Celsius will directly return to customers beginning in January 2024.