On Monday, BlockFi announced that it will register its high-yield cryptocurrency loan product with the SEC as part of a $100 million deal it has settled with US officials.
BlockFi Plans to Register with SEC for High Yield Cryptocurrency Loan Product
Cryptocurrency loan company BlockFi has announced that it plans to file a draft registration statement specifically with the SEC for its new cryptocurrency loan product called BlockFi Yield. If that happens, the company will have taken the first bureaucratic step towards offering a publicly traded registered securities product.
With the announcement in question, it was officially confirmed that BlockFi will pay a $ 100 million penalty. The company will pay $50 million of that penalty to the SEC, with the remaining $50 million to settle with 32 states that have sued the company for allegedly offering unregistered securities.
According to the SEC’s press release, the company cooperated with the government’s investigation and took the necessary remedial measures. However, the company has denied the charges against it in dealings with both the SEC and state representatives.
SEC Chairman Gary Gensler Makes Statement on the Subject
Gary Gensler, in his statements on the subject, said:
“This is the first of its kind in the space of cryptocurrency lending platforms. With the agreement we made, it has also been understood that it is an obligation for the cryptocurrency market to comply with securities laws.”
In a statement to the press, BlockFi said that its customers already registered in the USA will continue to receive interest income, but will not be able to add more cryptocurrencies to their accounts from today. After completing the registration process with the SEC, these accounts will turn into BlockFi Yield accounts.