BlockFi CEO Zac Prince responded to the states’ action in a series of tweets in July. He said, “We remain firm in our belief that the BlockFi Interest Account is not a security. We are fully operational for all of our existing clients in New Jersey and worldwide, who continue to have access to all products, services, and assets on the BlockFi platform.”
He added, “We will continue to engage with all relevant authorities to protect our clients’ interests and expand accessibility to innovative financial solutions for all.”
The SEC has been aggressive in cracking down on cryptocurrency firms. The federal securities regulator’s most recent enforcement action was against American CryptoFed DAO LLC.
Last week, the SEC halted the American CryptoFed from registering its Ducat and Locke digital tokens as equity securities. The Wyoming-based crypto firm filed a materially deficient and misleading registration form.
In September, the Commission issued a Wells Notice to Coinbase (NASDAQ: COIN) regarding its planned Lend product, which allows customers to earn interest on select cryptocurrencies on its platform. Coinbase decided to abandon its plan to launch the product following the SEC’s warning.
