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BlockFi Submitting to Rules Shows SEC Tightening Grip on Crypto

  • Firm agreed to pay $100 million to SEC and state regulators
  • Officials had been probing firm over crypto lending product
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WATCH: BlockFi CEO Zac Prince discusses the crypto platform’s agreement to pay $100 million to the SEC and state regulators over allegations it illegally offered a product that pays customers high interest rates to lend out their digital tokens.Source: Bloomberg

Crypto proponents have argued for years that regulators shouldn’t apply decades-old rules to the burgeoning asset class. But in a move with sweeping implications for the industry, at least one prominent company is now planning to register its offerings with the Securities and Exchange Commission

BlockFi Inc. announced on Monday that it’d seek SEC approval for accounts that pay clients high yields for lending out their crypto as part of a record $100 million settlement with federal and state securities watchdogs. The plan would give the Jersey City, New Jersey-based firm the first SEC sanctioned product of its kind, immediately adding pressure on competitors to follow suit.