While there was no reference to the SEC, recent activity and the Nexo product in question suggests that the SEC was involved. The new product, referenced as Earn Interest Product 2.0 will be available once Nexo has finalized the registration process with “ the relevant regulatory bodies”. Nexo also stated that the changes only affect the Earn Interest Product in the U.S and no other Nexo products. While existing clients can continue to earn interest on their balances, new U.S clients will need to qualify to earn interest via a new product. According to the announcement, Nexo made the changes to comply with “ newly-announced guidance”. This week, Nexo ( NEXO) announced voluntary changes to its Earn Interest Product in the U.S. Coinbase halted the planned launch after receiving news that the SEC planned to sue without reportedly providing any explanation. Via Lend, eligible Coinbase users can earn interest on selected assets with APYs starting from 4% on USD Coin ( USDC). Other crypto platforms have also been targets of the SEC, with even Coinbase ( COIN) coming under regulatory fire over plans to launch a digital asset program called Lend. While the SEC deems Ethereum ( ETH) not to be a security, the SEC alleges that Ripple Lab ( XRP) raised over $1.3bn through an unregistered, ongoing digital asset securities offering. 17, 2021, 7:37 AM BlockFi Faces SEC Scrutiny Over High-Yield Crypto Accounts (1) Ben Bain Bloomberg News Joe Light Bloomberg News Matt Robinson Bloomberg News U.S. It is this very issue of whether the SEC deems a product as a security that has resulted in the extended SEC case against Ripple. The SEC claimed that BlockFi’s high yielding accounts were unregistered securities. Just last week, the SEC hit BlockFi with a $100m penalty. Earn fixed or variable interest by lending crypto in a DeFi market. An ongoing area of focus continues to be the classification of cryptos and DeFi products. Earn Passive Income Staking Crypto Blockfi faces sec scrutiny over high-yield crypto accounts. SEC v CryptoĪ number of exchanges have fallen under the watchful eye of the SEC in recent months. SEC Chairman Gary Gensler had warned the crypto market of what’s to come back in January. The SEC review focuses on whether the BlockFi accounts are akin to securities that should be registered with the regulator, according to a person with knowledge. Regulatory scrutiny has been in overdrive at the turn of the year.
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