Former CFTC Chairman Giancarlo Leaves BlockFi Board of Directors as States Crack Down on Company

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  • Christopher Giancarlo is known as “Crypto Dad.”
  • He is replaced on the BlockFi board of directors by Ellen-Blair Chube.

Christopher Giancarlo, who chaired the U.S. Commodity Futures Trading Commission (CFTC) from 2017 and 2019 for a five-year term as commissioner, resigns from the board of directors of cryptocurrency lenders. BlockFi.

Press Release company said today that he will be replaced by Ellen-Blair Chube, CEO of financial services firm William Blair. Giancarlo “will continue to provide strategic advice to the firm in an advisory role,” the statement read.

” best is yet to come for BlockFi and I know that as crypto assets take a bigger role in the strategies of retail and institutional investors, BlockFi will be there to lead the way,” Giancarlo said in a statement.

BlockFi was recently targeted by state securities regulators: Four states ordered it to stop offering its BlockFi interest accounts to its residents.

Giancarlo, who earned the nickname ‘Crypto Dad’ for his friendly approach to digital assets, joined BlockFi’s board of directors in April when the fast-growing company was riding Bitcoin. company, which offers interest on cryptocurrency deposits and makes loans, earned $ 350 million in Series D funds in March and a business valuation of $ 3 billion.

Around the same time, other former regulators and politicians also jumped on the cryptocurrency carousel. US Senator Max Baucus joined crypto exchange Binance as an advisor. Obama and Clinton campaign professionals Jim Messina and Lane Kasselman connected with wallet provider and Blockchain exchange. And Acting Comptroller of Currency Brian Brooks left the field for a short-lived role as CEO of Binance.US.

Like Brooks, who hastily quit after just three months of work, Giancarlo also abruptly leaves without much explanation. However, the regulatory environment is a possible culprit in both circumstances. Brooks was reportedly planning to create more distance between Binance US and Binance, which has been in a shaky situation with global and US regulators, just to come up with its own strategy. rejected by Binance CEO Changpeng Zhao.

Read also Unless the UK takes action now, it won’t be temporary

BlockFi is also fighting the fires. On July 20, the New Jersey Attorney General charged him with violating securities laws in relation to his BlockFi Interest Accounts (BIA), which offer clients a return on their cryptocurrency savings. He ordered the company to stop serving BIA’s new clients in the state.

Although New Jersey has delayed the order since, first to September 2 and then today to September 30, other states have accumulated. Alabama has issued a show of cause notice, which means it is ready to request a termination and desist unless BlockFi properly states that it is not selling unregistered securities in the state. Securities are negotiable assets used as financial instruments; You must be registered with the federal and state securities regulators.

Texas, Vermont, and Kentucky also filed termination and withdrawal orders, forcing BlockFi to stop offering BIA in each state.

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