BlockFi to Seek SEC Registration for New Product in the United States

The crypto-lending platform BlockFi announced its intention to file a Form S-1 with the U.S. Securities and Exchange Commission (SEC) for the BlockFi Yield (BY) product in a confidential filing. This, говорится in a press release.

“[…] we have always known that active engagement with regulators will be pivotal to delivering cryptocurrency-based financial services. Today’s milestone is another example of our pioneering efforts to provide regulatory clarity,”

— said the company’s chief executive, Zac Prince.

According to the release, existing holders of BlockFi Interest Accounts BIA will continue to earn interest, “but will not be able to add new assets to their accounts from February 14, 2022.”

U.S. citizens will lose the ability to open new BIA accounts. After SEC approval they will be replaced with BlockFi Yield, “unless the client specifies otherwise.”

“Today’s decision does not apply to BlockFi BIA clients outside the United States,” — said the company’s spokesperson.

Earlier details emerged about the the settlement of the conflict between the crypto-lending platform and regulators. BlockFi agreed to pay $50 million to the Commission and an equivalent amount to regulators in 32 states.

“This is the first such case involving crypto-lending platforms. The settlement makes clear that crypto markets must comply with time-tested securities laws,” заявил SEC Chairman Gary Gensler.

In July 2021 BlockFi faced claims from financial regulators at the state level. The New Jersey Bureau of Securities forbade the company from opening new BIA accounts for its residents.

Later the Alabama regulator accused the company of selling unregistered securities. Soon it emerged that BlockFi’s activities were under scrutiny in Vermont.

Back in September, stated, that the company’s services with interest-bearing accounts do not fall under securities laws. The company said it does not intend to rely on the opinions of state regulators—everything rests with federal authorities.

Subsequently Bloomberg reported that the SEC initiated an investigation into BlockFi. The regulator allegedly examined the legality of offering the BIA without registration with the agency.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news stream, ForkLog — the most important news, infographics and opinions.