BlockFi is under fire from a second U.S. state over concerns its interest-bearing crypto accounts may be unregistered securities.
- Late Wednesday, the Alabama Securities Commission asked crypto lender BlockFi to show why it should not be required to stop selling unregistered securities in the state.
- The commission alleges that BlockFi has funded cryptocurrency lending and proprietary trading at least in part through the sale of unregistered securities.
- BlockFi Interest Accounts (BIAs) are not registered with the regulator, the commission said Wednesday.
- The company has 28 days to respond.
- In a tweet, BlockFi said that it believes its products are lawful and appropriate and that BIAs are not securities.