The SEC is looking into crypto lending platform BlockFi and its BIA savings accounts, which are not registered with the agency.
The New Jersey-based company has become popular thanks to its profitable savings instrument, which allows users to receive annual returns of up to 9.5%. Traditional savings accounts allow holders to earn just 0.06% annually. But unlike bank deposits, digital asset savings accounts are not insured by the federal government.
The SEC has launched investigations to determine whether BlockFi accounts resemble securities, but has not yet formally charged them with violating the law.
This is not the first meeting between BlockFi and the authorities. New Jersey, Alabama and Texas said in July that the platform had not registered its BlockFi or BIA interest-bearing accounts with state regulators.
Under Chairman Gary Gensler, the agency is trying to increase oversight of the digital asset space. His most recent high-profile prosecution involved Coinbase Global in September. The SEC forced to abandon Coinbase from the lending program by threatening to sue for illegal actions.
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