NJ Regulators Give BlockFi 1 Week Before Blocking New Interest Accounts
The state’s securities regulator contends BlockFi is selling an “unregistered security” to its customers.
Jul 21, 2021 at 7:31 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/4FE77RPEDNDAXJGPNMDTU5SATE.jpg)
/arc-photo-coindesk/arc2-prod/public/OGSWVF6C3VEKHGNM2YFB434DDE.png)
Drive the Crypto Policy Conversation Forward
October 24, 2023 • Convene • Washington D.C.Register NowNew Jersey regulators are giving crypto lender BlockFi an extra week before its ban on the creation of new interest-bearing accounts will take effect, CEO Zac Prince tweeted Wednesday.
Prince said New Jersey’s Bureau of Securities (NJ BOS) “has postponed the effective date” of Tuesday’s surprise order to stop the sale of BlockFi interest accounts until July 29. Originally, the order was set to hit on July 22.
NJ BOS contends that BlockFi Interest Accounts amount to unregistered securities; BlockFi claims they are not.
The extra week buys BlockFi some time to navigate the ramifications of the regulator’s order. That said, it could be a body-blow to the crypto lender. NJ BOS has said BlockFi holds $14.7 billion in assets through its BIA product. (How much of that is held by New Jersey consumers is unclear.)
BlockFi’s Prince has repeatedly said the cease-and-desist will not impact existing BlockFi customers, a claim the NJ BOS order appears to echo.
Less clear, however, is the extent to which this could impact new BlockFi customers, and whether its impact could spread beyond New Jersey.
BlockFi declined to comment further. NJ BOS did not immediately comment.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.