BlockFi Fighting Regulatory Fires in 3 US States Reportedly Wants to Go Public

cryptoshitcompra.com/wp-content/uploads/2021/07/BlockFi-lucha-contra-incendios-regulatorios-en-3-estados-de-EE.png »alt =» BlockFi fights regulatory fires in 3 US states. Reportedly wants to make it public 101 ″ class = »content-img» /> Source: screenshot, Instagram / blockfi

Other state regulators are beginning to follow New Jersey’s lead after the state attorney general was reported to have served last week. BlockFi , one of America’s leading cryptocurrency lending companies, with a cease-and-desist order – Alabama and Texas have issued similar orders. But it appears that the actions of regulators have yet to derail the company’s potential plans to go public.

New Jersey Attorney General (AG) initiated the process by essentially accusing BlockFi of violating state bond laws, and its Acting Attorney General, Andrew Bruck, said:

“Our rules are simple. If you sell securities in New Jersey, you must comply with New Jersey securities laws.

AG’s office then decided to give BlockFi another week to stop accepting new New Jersey-based clients for interest-bearing accounts as part of its BlockFi Interest Account (BIA) initiative.

But yesterday Cryptonews.com reported that Alabama Securities Commission ASC director Joseph Borg had brought the company under fire with a warrant. This order requires the company to explain why it should not be served with a cease and desist order.

And now it looks like Texas has come to the table. In a notification that appears to have been disconnected at the time of this writing, the Texas State Bond Board revealed that it was in fact in talks with BlockFi on regulatory issues since the spring of this year. board wrote:

“On or about April 20, 2021, the Compliance Division of the State Securities Board notified BlockFi that [it] may have offered securities in Texas that may not comply with the Securities Law. […] However, [BlockFi has] continued to offer BIA to Texans in violation of Sections 7 and 12 of the Securities Act. “

In, the company claimed that it was “fully operational for all existing customers around the world,” adding that “customers will continue to have access to all products, services and resources at BlockFi.”

Read also Dfinity ICP increases 28% in Weekend Boost

company also issued the following statement:

“We are actively collaborating with multiple regulators to demonstrate that the BIA is not a security and should not be regulated as such. We strongly believe that the BIA is legal and appropriate for participants in the cryptocurrency market and we remain steadfast in our commitment to fight for the rights of consumers to earn interest on their crypto assets. We welcome discussions with regulators and believe that proper regulation of this sector is the key to its future success. ‘

A legal expert chimed in with some analysis: Preston Byrne, a partner in the New York offices of the Anderson Kill corporate law firm , wrote that “Alabama, and presumably New Jersey, seems to believe that a BIA is not an” account. “But rather a product.” He said it was worth noting that “BlockFi allows investors to buy a BIA.”

Byrne also noted that BlockFi’s defense was also worth considering, writing:

“At least at first, the BlockFi topic seems to be a more interesting discussion than usual ‘I am selling an [initial coin offering] here for a lot of Americans and it’s not a security issue because it’s useful.”

lawyer added that the crux of the BlockFi case would likely be that BIA is more of an account than a product and that “a bank deposit account or certificate of deposit, while it fulfills many of the functions of a security, is not treated as a security. under federal securities laws due to the intent of Congress and almost zero risk of default due to the application of federal banking law.

However, Byrne also said this likely won’t remain a problem for state regulators for much longer. He wrote:

“At this point, there is no way the feds will rule it out.”

But despite all the legal fury, BlockFi seems determined to pursue ambitious plans to float on an exchange. Coindesk reported that BlockFi “aims to go public in 12-18 months,” according to documents said to have been “disclosed to investors” on Wednesday of this week.

Although BlockFi has been cited for “refusing to comment” on the “current status of its plans,” the documents show that BlockFi will close an E-series funding round on July 27, with “people familiar with the matter.” could raise $ 500 million.

Documents, continued the media, show that BlockFi pointing to a huge “post – assessment money $ 4.75 billion» .____ To learn more: – apparent error BlockFi Fat Finger see users ‘accredited BTC 701’ – BlockFi Valued at $ 3 Billion After $ 350 Million Round – Bitcoin Shows Resilience Amid Global Political Pullback

Source link

more

Related Posts

© 2024 Cryptocoin Budisma.net