Several states Securities regulators have been frowning Regarding the recent BlockFi Interest Account (BIA). This includes BlockFi’s hometown of New Jersey, which can be said to be one of the stricter actions taken against the company. New Jersey issued a suspension order instructing the company to stop offering its BIA products before the end of this week. Now, New Jersey’s securities regulator temporarily braked and extended the deadline. However, at the same time, Vermont has also joined the ranks of New Jersey, Texas, and Alabama, raising regulatory concerns about BlockFi’s BIA products.
New Jersey extends deadline
The New Jersey Attorney General issued a suspension order on July 19, ordering the company to stop accepting new BIA accounts by July 22. The deadline seems to have been extended to July 28, and now it has been extended to September 2. This will allow the company to spend more than a month to resolve seemingly significant regulatory obstacles.The message is as Company Announcement On the BlockFi website, from CEO Zac Prince.
Prince also specified that New Jersey’s actions will not affect current BIA customers or other BlockFi products in the state, and the order only requires preventing the creation of new BIAs. “Your access to BlockFi has not been affected at all,” Prince said, adding that he sees 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
Vermont adds their names to the list
Although for BlockFi’s American team, another calendar month may be a relief, they are still busy with the addition of Vermont to the above-mentioned list of states for BIA products.
The Vermont Department of Financial Supervision has given the company 30 days to present evidence to the commissioner of the department as part of the “Show Cause Order”. Alabama also issued a Show Cause Order to the company, which contained a similar 30-day order. In addition, like the other three states that withdrew from regulatory microscopes, Vermont also made BIA products the main point of contention.
Through a series of headlines from the company in recent weeks, BlockFi has maintained its position that its BIA is not a security, and the company is in active and ongoing dialogue with regulators. As regulators classify what securities are and what are not securities, the encryption gray area may continue to cause headaches for emerging companies.
Regardless of how the situation in each state changes, BlockFi may be busy in the coming months.
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