Share this article
NJ Regulators Give BlockFi 1 Week Before Blocking New Interest Accounts
The state’s securities regulator contends BlockFi is selling an “unregistered security” to its customers.
By Danny Nelson
Updated May 9, 2023, 3:21 a.m. Published Jul 21, 2021, 7:31 p.m.
Make us preferred on Google
New Jersey regulators are giving crypto lender BlockFi an extra week before its ban on the creation of new interest-bearing accounts will take effect, CEO Zac Prince tweeted Wednesday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Prince said New Jersey’s Bureau of Securities (NJ BOS) “has postponed the effective date” of Tuesday’s surprise order to stop the sale of BlockFi interest accounts until July 29. Originally, the order was set to hit on July 22.
NJ BOS contends that BlockFi Interest Accounts amount to unregistered securities; BlockFi claims they are not.
NJ BOS has postponed the effective date of its previous order, which calls for preventing the creation of all new BlockFi Interest Accounts, to Thursday, July 29, 2021. The order does not impact our current BIA clients or any of our other products.
— Zac Prince (@BlockFiZac) July 21, 2021
The extra week buys BlockFi some time to navigate the ramifications of the regulator’s order. That said, it could be a body-blow to the crypto lender. NJ BOS has said BlockFi holds $14.7 billion in assets through its BIA product. (How much of that is held by New Jersey consumers is unclear.)
BlockFi’s Prince has repeatedly said the cease-and-desist will not impact existing BlockFi customers, a claim the NJ BOS order appears to echo.
Less clear, however, is the extent to which this could impact new BlockFi customers, and whether its impact could spread beyond New Jersey.
BlockFi declined to comment further. NJ BOS did not immediately comment.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips
Cometh founder Jerome de Tychey is applying DeFi lending and borrowing on platforms like Aave, Morpho, and Uniswap to structures that help the ultra-wealthy secure loans against their massive crypto fortunes.
What to know:
- Wealthy investors who hold much of their fortune in crypto are increasingly turning to decentralized finance platforms to secure flexible credit lines without selling their digital assets.
- Firms like Cometh help family offices and other rich clients navigate complex DeFi tools, using assets such as bitcoin, ether and stablecoins to replicate traditional Lombard-style collateralized loans.
- DeFi loans can be faster and more anonymous than traditional bank credit but carry volatility and liquidation risks, and Cometh is also experimenting with applying DeFi strategies to traditional securities via ISIN-based tokenization.
Top Stories
