Alabama Issues 'Show Cause' Order to BlockFi
The Alabama Securities Commission alleges that BlockFi has funded cryptocurrency lending in part through the sale of unregistered securities.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/HHUW6GQJL5EMHGO43BWISJ6FXM.jpg)
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.
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.
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.