BlockFi Gets Another Extension From NJ Regulators on New Interest Accounts Ban

An order prohibiting the crypto lender from creating new interest-bearing accounts has now been postponed for the third time to Dec. 1.

AccessTimeIconSep 22, 2021 at 3:41 p.m. UTC
Updated May 11, 2023 at 5:45 p.m. UTC

The New Jersey Bureau of Securities (NJ BOS) has once again postponed the date by when it will enforce a ban on the creation of BlockFi Interest Accounts (BIAs), BlockFi announced on Twitter on Wednesday.

  • The ban was initially supposed to go into effect on July 22 and then was delayed until Sept. 2. There was a second delay to Sept. 30, announced earlier this month. The ban has now been postponed yet again, this time to Dec. 1, following “ongoing discussions” between the two parties, BlockFi said.
  • BlockFi said it is in “active dialogue with regulators” and “firmly believes that it is lawful and appropriate for crypto market participants.”
  • The company said the order is not currently in effect and has no impact on its current BIA clients or those of any of its other products.
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    • The N.J. BOS has said the BIAs are equivalent to unregistered securities, while BlockFi has argued they are not.
    • BlockFi is facing similar scrutiny of its interest-bearing crypto accounts from Kentucky, Vermont, Texas and Alabama. BlockFi has said before that it is in “active dialogue with multiple regulators” regarding the accounts.

    UPDATE (Sept. 22, 15:55 UTC): Updated with additional background in fourth and fifth bullet points, and adds this is the third extension in the first bullet point.

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    Nelson Wang

    Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


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