New Jersey’s securities commission has delayed the deadline for enforcing the restriction on the formation of BlockFi’s interest accounts once more. The restriction was supposed to take effect on July 22, but the new date has been pushed back to December 1.

In July, New Jersey became the first state in the United States to ban BlockFi. The state’s Bureau of Securities issued a cease-and-desist order, accusing the loan company of marketing unregistered securities. The corporation has until July 22 to stop opening new interest accounts, according to the regulator.

The deadline was pushed back to September 2 and again to September 30. Now, BlockFi has revealed that the BIA has granted it a two-month respite.

“We firmly feel that it is lawful and suitable for crypto market participants,” the company stated in an update, adding that it was inactive communication with regulators about its interest accounts. Nevertheless, we will continue to fight for consumers’ rights to earn interest on their cryptocurrency assets.”

The cease-and-desist order issued by New Jersey solely applies to the opening of new interest accounts. As a result, it has no bearing on current clients or any other BlockFi products, according to the Zac Prince-led company.

“All existing BIA clients, in New Jersey and worldwide, continue to have access to their accounts. All other products, services and assets on the BlockFi platform are unaffected,”

the firm, which is based in Jersey City, stated.

Regulators in four states have taken a similar stance against BlockFi as New Jersey has in what has now become a digital currency lending purge. Celsius, its main competitor, is facing a similar fate in three states. Coinbase is also encountering regulatory issues with the Securities and Exchange Commission (SEC) regarding lending.

Prince has downplayed the state crackdown, insisting that he wait for federal regulators to give him instructions.

“We’re not going to decide what box crypto lending belongs to based on what New Jersey does or what Texas does, or what any one other state does. It’s going to come down to federal regulators like the SEC, or the OCC, creating a path for this type of activity to happen.”


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