BlockFi Faces Crackdown by a Third US State, Texas
The Lone Star state’s proposed cease-and-desist order would bar BlockFi from offering interest accounts without registering with the state’s securities regulator.
An order by the New Jersey Bureau of Securities had already been delayed once.
Alabama, Texas and New Jersey are investigating whether the firm's marquee offering violates local securities laws.
Kentucky is the fifth state to allege BlockFi Interest Accounts are securities.
The crypto lender is days away from closing a $500 million Series E, sources say. A timetable for a public listing is circulating among investors.
The DeFi industry should watch closely the regulatory actions taken against BlockFi and the securities questions being raised, CoinDesk columnist Preston Byrne writes.