BlockFi Gets More Time From NJ Regulators Before New Interest Accounts Are Banned

An order by the New Jersey Bureau of Securities had already been delayed once.

AccessTimeIconJul 28, 2021 at 9:58 p.m. UTC
Updated Sep 14, 2021 at 1:32 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto lender BlockFi has been given at least another month before the New Jersey Bureau of Securities (NJ BOS) will enforce a ban on the creation of new BlockFi Interest Accounts (BIAs).  

BlockFi tweeted on Wednesday that the postponement followed ongoing talks between BlockFi and NJ BOS “to provide more details about the BIA.”  

NJ BOS’s order was originally set to go into effect on July 22, and then was delayed until Thursday. 

BlockFi is facing similar scrutiny of its interest-bearing crypto accounts from Texas and Alabama. In its tweet, BlockFi said it is in "active dialogue with multiple regulators" regarding its BIAs.

NJ BOS has argued that the BlockFi Interest Accounts amount to unregistered securities, while BlockFi has said that they are not.

“We firmly believe that the BIA is lawful and appropriate for crypto market participants, and we remain steadfast in our commitment to fight for consumers rights to earn interest on their crypto assets,” BlockFi wrote in its tweet on Wednesday.

BlockFi had no additional comment on the matter, while the NJ BOS could not be immediately reached.

BlockFi has maintained that the New Jersey order does not affect existing BlockFi customers or any of its other products, a claim the NJ BOS order appears to support. 

Less clear, though, is the extent to which this could affect new BlockFi customers and whether the order’s impact could spread beyond New Jersey.

NJ BOS has said BlockFi holds $14.7 billion in assets through its BIA product, although how much of that is held by New Jersey consumers is unclear. 

The New Jersey-based company has indicated it plans to go public in the next 12 to 18 months.

Danny Nelson contributed reporting.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


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.