Bloomberg: BlockFi's high-yield cryptocurrency accounts attract SEC attention – Bits Media

United States Securities and Exchange Commission (SEC) is investigating the need to register a high-yield savings product, launched by the BlockFi service.

Bloomberg publication with reference to its own sources reports, what the regulator is trying to figure out, do high yield savings accounts qualify?, offered by the cryptocurrency lending service BlockFi, subject to compulsory licensing. The annual yield on such accounts is 9.5%, which is ten times higher than interest on bank deposits. At the same time, the volume of deposits of BlockFi and other similar companies exceeds $40 million.

SEC claims, that when a consumer invests in a “regular company” for the purpose of generating income, an investment contract must be concluded, what falls under the jurisdiction of the regulator. Commission states, which seeks to protect the interests of investors. Really, BlockFi and other companies' cryptocurrency accounts are not subject to U.S. savings insurance laws and, в случае банкротства компании, инвестор может потерять все средства.

На сайте компании подчеркивается, что BlockFi ведет «активный диалог» с различными регуляторами. Журналисты Bloomberg направили одному из основателей компании Заку Принсу (Zack Prince) запрос о том, ведет ли SEC расследование деятельности BlockFi. but, Принс не ответил на запрос.

Previously, the BlockFi service had already encountered regulatory bans in several American states.. So, this summer, the New Jersey prosecutor's office limited the service's operation in the state, and then Vermont joined the sanctions, Alabama and Texas.

Recall, that in September the cryptocurrency exchange Coinbase canceled the launch of a similar cryptocurrency savings instrument after a warning from the regulator.