Embattled cryptocurrency lender BlockFi is facing scrutiny from regulators within a fourth state, Vermont, over the legality of its interest account product.
In line with BlockFi’s official website, securities regulators in Vermont have issued an order on the matter. What that order said isn’t yet known.
But it comes as agencies in Alabama, Texas as well as New Jersey are investigating whether the firm’s marquee offering, the BIA [BlockFi Interest Account], violates native securities laws. New Jersey has given BlockFi until 29th July to elucidate itself prior to the state bars the firm from opening new accounts.
BlockFi has countered that it doesn’t believe BIA might be a security. It added that it’s in active discussions with regulators on the matter.
Neither BlockFi nor the Vermont Department of Financial Regulation responded to an official comment, at the reporting time.