Crypto Lender BlockFi Intends To Offer First SEC Registered Crypto Interest-Bearing Security

U.S.-based cryptocurrency lending firm BlockFi says it intends to file or confidentially submit a registration statement on Form S-1 with the SEC for the offering of BlockFi Yield, which is anticipated to be the first SEC registered crypto interest-bearing security.

What Happened: BlockFi announced that its subsidiary BlockFi Lending entered into a resolution with both the SEC and the North American Securities Administrators Association to provide regulatory clarity and a path forward for clients across the United States who want to earn interest on their crypto assets. 

See Also: BLOCKFI REVIEW

BlockFi founder and CEO Zac Prince said that the company intends "for BlockFi Yield to be a new, SEC-registered crypto interest-bearing security, which will allow clients to earn interest on their crypto assets."

The firm recently agreed to pay $100 million to the SEC and state regulators in a settlement over allegations its crypto interest-yielding accounts were being operated illegally. The settlement contains "no admission or denial of wrongdoing or liability."

Thanks to the resolution, BlockFi's U.S.-based clients will keep their interest accounts and continue to receive interest, but cannot add new assets starting Feb. 14.

After the completion of the SEC registration process for BlockFi Yield, BlockFi Interest Accounts of U.S. clients will be exchanged for BlockFi Yield. Customers outside the United States are unaffected.

Related Link: Amex CEO Says Company Looking Into Crypto Rewards, But No Plans For Crypto-Linked Cards

Correction: The S-1 filing is specific to BlockFi Yield, not plans for a stock offering as previously mentioned.

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