Vermont Joins 3 States On BlockFi Regulatory Action
29 Luglio 2021 - 6:06AM
NEWSBTC
Several states’ securities regulators have been furrowing their
brows with regards to BlockFi Interest Accounts (BIA) lately. This
includes BlockFi’s home state of New Jersey, who was arguably one
of the more strict in their action towards the firm; New Jersey
issued a cease and desist that instructed the firm to stop offering
their BIA product before the end of this week. Now, securities
regulators in New Jersey have pumped the brakes for a moment,
extending that deadline. However, in the meantime, Vermont has
joined the ranks of New Jersey, Texas, and Alabama for issuing
regulatory concerns around BlockFi’s BIA product. New Jersey
Extends Deadline New Jersey’s state attorney general issued a cease
and desist on July 19, ordering the firm to stop accepting new BIA
accounts by July 22. That deadline was seemingly extended to July
28, and now has been extended once more to September 2. This will
give the company over a month to sort through what appears to be
very substantial regulatory hurdles. The news came as part of a
company announcement on BlockFi’s website from CEO Zac Prince.
Prince also elaborated that New Jersey’s actions would not impact
current BIA customers in the state, or other BlockFi products, and
that the order only calls for preventing the creation of new BIAs.
“Your access to BlockFi is completely unimpaired,” said Prince,
adding that he saw these regulatory calls as “an opportunity for
BlockFi to help define the regulatory environment for our
ecosystem.” As the broader crypto and DeFi landscape continues to
grow, so too will regulatory eyeballs. | Source: CRYPTOCAP:TOTAL
DEFI on TradingView.com Related Reading | TA: Bitcoin Eyes Key
Upside Break, Why Bulls Remain In Control Vermont Adds Their Name
To The List While another calendar month is likely a nice sigh of
relief for BlockFi’s domestic team stateside, they’ll have their
hands still full with Vermont joining the ranks of the
aforementioned list of states targeting the BIA product. The
Vermont Department of Financial Regulation has given the company 30
days to show the department commissioner evidence as part of a
‘Show Cause Order’. Alabama also issued the firm a Show Cause Order
with a similar 30 day command. Additionally, like the three other
states pulling out the regulatory microscope, Vermont is also
calling out the BIA product as the main point of contention.
Through the flurry of headlines for the company in recent weeks,
BlockFi has maintained it’s stance that it’s BIAs are not
securities and that the firm is in active, ongoing conversations
with regulators. The crypto grey area is likely to continue to
cause emerging companies headaches, as regulators sort through what
are and what aren’t securities. Regardless of how the situation
shakes out in each state, it’s likely going to be a busy few months
for BlockFi ahead. Related Reading | Hands-On With TradingView ‘All
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