{"id":10217,"date":"2021-07-29T15:54:03","date_gmt":"2021-07-29T15:54:03","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/new-jerseys-order-against-blockfi-extended-vermont-issues-notice-to-crypto-lender\/"},"modified":"2021-07-29T15:54:03","modified_gmt":"2021-07-29T15:54:03","slug":"new-jerseys-order-against-blockfi-extended-vermont-issues-notice-to-crypto-lender","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/new-jerseys-order-against-blockfi-extended-vermont-issues-notice-to-crypto-lender\/","title":{"rendered":"New Jersey\u2019s Order Against Blockfi Extended, Vermont Issues Notice to Crypto Lender"},"content":{"rendered":"

On July 28, Zac Prince, the CEO of crypto finance firm Blockfi, explained that the company has been \u201cengaged in a productive discourse\u201d with U.S. regulators. Prince further said the New Jersey Bureau of Securities had extended the state\u2019s previous order to September 2. Meanwhile, the company also has issues with Vermont\u2019s Department of Financial Regulation (DFR), as the state\u2019s DFR commissioner filed an order against the firm\u2019s Blockfi Interest Accounts (BIAs).<\/strong><\/p>\n

Garden State Regulators Give Blockfi an Extension, Vermont Issues Regulatory Complaints<\/h2>\n

Four states have taken issue with Blockfi\u2019s BIAs and regulators have issued notices to the company in recent times. Blockfi\u2019s co-founder Zac Prince revealed<\/a> the company\u2019s issues with New Jersey regulators on July 19. New Jersey\u2019s public notice<\/a> and complaints about Blockfi\u2019s crypto BIAs cited the \u201csale of unregistered securities.\u201d<\/p>\n

Then on July 22, regulators from Texas and Alabama<\/a> also sent notice to the company concerning the BIAs. Blockfi now has problems with a fourth state, as Vermont\u2019s Department of Financial Regulation (DFR) has issued a notice to Blockfi as well.<\/p>\n

Documents<\/a> discovered by financial reporter Danny Nelson<\/a> on July 27, show that Michael S. Pieciak, the commissioner of Vermont\u2019s DFR, has issued a 30-day show cause order. The notice details that Blockfi has to convince the state\u2019s regulator its BIAs are not securities.<\/p>\n

\u201cBIAs are not registered or permitted for sale in Vermont, nor do they qualify for any exemption from registration pursuant to the Securities Act,\u201d the notice says. The company is \u201cnot registered with the Vermont Department of Financial Regulation to offer or sell securities in Vermont,\u201d Pieciak\u2019s order adds.<\/p>\n

<\/p>\n

Blockfi CEO: Company Is Engaged in Productive Discourse With Regulators<\/h2>\n

The day after Pieciak\u2019s notice to Blockfi, Prince addressed the public via a company blog post. \u201cWe have been engaged in a productive discourse with regulators to protect your interests and expand accessibility to innovative financial solutions for all,\u201d Prince wrote. \u201cThis is our commitment to you \u2014 to fight for your rights to earn interest on your crypto assets,\u201d the Blockfi executive added.<\/p>\n

Prince gave an update regarding the case in New Jersey as well and said the New Jersey Bureau of Securities extended their deadline. Prince said:<\/p>\n

One update I want to share with you following these discussions is that the New Jersey Bureau of Securities (NJ BOS) has further postponed the effective date of its previous order to Thursday, September 2, 2021.<\/p>\n

Blockfi\u2019s founder said that while the order prevents the creation of new BIAs in New Jersey it does not impact other products and current customers. \u201cRest assured, your access to Blockfi is completely unimpaired,\u201d Prince stressed. Blockfi co-founder Flori Marquez also shared Prince\u2019s post on Twitter and said the company is working with financial regulators.<\/p>\n

\u201cAt Blockfi, we are focused on protecting consumers\u2019 rights to earn interest on their crypto,\u201d Marquez said. \u201cOver the last week, we\u2019ve had constructive talks with regulators about why the BIA is appropriate for crypto market participants.\u201d<\/p>\n

What do you think about Blockfi\u2019s recent update and the company\u2019s issues in the state of Vermont? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Blockfi, Blockfi CEO, Blockfi Interest Bearing Accounts, Bureau of Securities, Crypto Accounts, Cryptocurrency, Garden State, Interest-Bearing, Michael S. Pieciak, New Jersey, protect investors, Securities, state of New Jersey, Vermont, Vermont Commissioner, Vermont\u2019s Department of Financial Regulation, zac prince<\/p>\n","protected":false},"excerpt":{"rendered":"

On July 28, Zac Prince, the CEO of crypto finance firm Blockfi, explained that the company has been \u201cengaged in a productive discourse\u201d with U.S. regulators. Prince further said the New Jersey Bureau of Securities had extended the state\u2019s previous order to September 2. Meanwhile, the company also has issues with Vermont\u2019s Department of Financial…<\/p>\n","protected":false},"author":0,"featured_media":10218,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10217"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10217"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10218"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}