{"id":46637,"date":"2021-07-25T12:04:50","date_gmt":"2021-07-25T09:04:50","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=46637"},"modified":"2025-09-01T17:26:46","modified_gmt":"2025-09-01T14:26:46","slug":"vermont-regulators-launch-probe-into-blockfis-activities","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/vermont-regulators-launch-probe-into-blockfis-activities\/","title":{"rendered":"Vermont Regulators Launch Probe into BlockFi\u2019s Activities"},"content":{"rendered":"<p>Vermont securities regulators are examining the legality of BlockFi&#8217;s BlockFi Interest Account (<span data-descr=\"BlockFi Interest Account\" class=\"old_tooltip\">BIA<\/span>) offering from the crypto-lending platform BlockFi. According to <a href=\"https:\/\/blockfi.com\/disclosures-and-complaints\/\">the company&#8217;s site<\/a>, it has received the relevant notice.<\/p>\n<p>BlockFi did not disclose the contents of the document. The company said it is engaged in active dialogue with regulators to demonstrate that the BIA does not have securities characteristics.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;We firmly believe that the offering is legal and appropriate for participants in the cryptocurrency market. We remain steadfast in our commitment to fight for consumers\u2019 right to earn interest on cryptocurrency deposits,&#8221; the company writes.<\/p>\n<\/blockquote>\n<p>BlockFi stressed that the BIA is not insured by the <span data-descr=\"Federal Deposit Insurance Corporation\" class=\"old_tooltip\">FDIC<\/span> or the <span data-descr=\"Securities Investor Protection Corporation\" class=\"old_tooltip\">SIPC<\/span>. These accounts are also not registered with any federal or national regulator overseeing the securities market, as, in the company&#8217;s view, they do not fall under their jurisdiction.<\/p>\n<p>Vermont has become the fourth U.S. state to show interest in the company. Earlier, regulators in <a href=\"https:\/\/u1f987.com\/en\/news\/regulator-bars-blockfi-from-opening-new-accounts-for-new-jersey-residents\">New Jersey<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/alabama-regulator-accuses-blockfi-of-selling-unregistered-securities\">Alabama<\/a> and Texas accused BlockFi of selling unregistered securities in the guise of crypto-savings accounts.<\/p>\n<p>According to Preston Byrne, a partner at the law firm Anderson Kill, regulators are viewing the BIA as investment products rather than accounts, because securities laws &#8220;place substance over form.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Alabama, and presumably New Jersey, appear to be taking the view that a BIA is not an &#8220;account&#8221; but rather a product. Note the terminology Alabama uses in its C&#038;D: &#8220;BlockFi allows investors to purchase a BIA&#8221; <a href=\"https:\/\/t.co\/MvqYR8Lucp\">pic.twitter.com\/MvqYR8Lucp<\/a><\/p>\n<p>\u2014 Preston Byrne (@prestonjbyrne) <a href=\"https:\/\/twitter.com\/prestonjbyrne\/status\/1418215733960511488?ref_src=twsrc%5Etfw\">July 22, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;If something looks like a duck, walks like a duck, and quacks like a duck, then it\u2019s a duck, even if it\u2019s called a kangaroo,&#8221; Byrne wrote.<\/p>\n<\/blockquote>\n<p>In a note, a lawyer explained that, unlike BIA, crypto-denominated bank deposit accounts are not considered securities due to Congress\u2019s interpretation of the Securities Act of 1933 and the near-zero risk of default.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I\u2019ll hold my tongue for now as to which way I think this will go. What\u2019ll be interesting to see is if the regulator\u2019s opinion would change if, say, Bank of America offered a Bitcoin savings product vs this situation, where a private company is selling a Bitcoin investment note<\/p>\n<p>\u2014 Preston Byrne (@prestonjbyrne) <a href=\"https:\/\/twitter.com\/prestonjbyrne\/status\/1418219658478596096?ref_src=twsrc%5Etfw\">July 22, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;It will be interesting to see whether regulators\u2019 views change if, say, Bank of America offers a Bitcoin-based savings product, compared with a private company selling investment notes tied to the first cryptocurrency,&#8221; Byrne added.<\/p>\n<\/blockquote>\n<p>Anderson Kill partner stressed that not all crypto-denominated loans are securities subject to registration. In his view, the law provides several exemptions.<\/p>\n<p>As noted earlier, despite regulatory pressure, on July 27 BlockFi intended to close the funding round at a $4.75 billion valuation and, within 12\u201318 months, pursue an IPO.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener\">VK<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vermont securities regulators are examining the legality of BlockFi&#8217;s BlockFi Interest Account (BIA) offering from the crypto-lending platform BlockFi.<\/p>\n","protected":false},"author":1,"featured_media":46638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1436,36,26],"class_list":["post-46637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockfi","tag-regulation","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=46637"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46637\/revisions"}],"predecessor-version":[{"id":46639,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/46637\/revisions\/46639"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/46638"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=46637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=46637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=46637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}