According to ASC officials, the BlockFi startup’s BTC accounts might be considered unregistered securities.
Alabama’s financial regulators appear to have followed the US Securities and Exchange Commission’s example in its case against Ripple, declaring that accounts with BTC holdings handled by BlockFi might be considered unregistered securities. As a result, Alabama will be the second state on the list of those attempting to limit the firm’s operations. The Attorney General of New Jersey has already stated that the company must immediately stop accepting new customers.
However, before filing a claim, the Alabama regulator contacted BlockFi‘s management and requested that they provide at least one reason why the department should not force terminate the firm’s operations relating to the acquisition of unregistered stocks.
According to estimates, the demand for the BlockFi team’s services is expected to be about $15 billion. The ASC also brought up that BlockFi customers may earn up to 8.5 percent on cryptocurrency holdings. It was about bespoke assets in the USDT, BTC, and LTC currencies.
BlockFi quickly responded to the policy’s possible allegation, noting that user accounts cannot be considered a kind of stock and emphasizing that the company heeded the ASC’s warning. The firm now has 28 days to respond to the government with a thorough official answer.