SEC Reportedly Looking Into BlockFi’s Crypto Yield Products
The crypto lender was already in hot water with a number of state securities regulators earlier this year.
Nov 17, 2021 at 2:38 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/BERZMDWWBZFGNL7OPXH6OK6K5E.jpeg)
(Gabby Jones/Bloomberg via Getty Images)
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BlockFi’s high-yield crypto interest products have reportedly come under the federal microscope.
Citing one anonymous source, Bloomberg reported Wednesday the U.S. Securities and Exchange Commission (SEC) is “scrutinizing” the New Jersey-based crypto lender. Reportedly at issue are BlockFi’s marquee landing products, which can yield as much as 9.5%.
BlockFi has maintained that its product is not a security. But securities regulators appear to disagree. Earlier this year, a bevy of state-level agencies opened investigations into BlockFi, which would make the SEC only the latest force to give a look.
BlockFi declined to comment.
UPDATE (Nov. 17, 14:43 UTC): Adds that BlockFi declined to comment.
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Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.