S&C Advises BlockFi in Interest-bearing Crypto Account Launch and SEC SettlementFebruary 25, 2022
BlockFi announced plans to register with the Securities and Exchange Commission to offer BlockFi Yield, a new interest-bearing crypto account. BlockFi Yield will replace BlockFi Interest Accounts (BIAs) for U.S. clients, following a settlement with the SEC and state regulators that clarified regulatory questions surrounding cryptocurrency lending practices. BlockFi Lending is the first company to settle with the SEC or state regulators regarding interest-bearing crypto accounts, and its parent, BlockFi Inc., is the first to announce plans to register an interest-bearing crypto account product.
BlockFi Yield will allow crypto holders to earn monthly interest on crypto assets. As of December 2021, BlockFi Lending and its affiliates held more than $10 billion in BIA assets and had more than 570,000 BIA clients, including more than 390,000 clients in the United States.
The S&C litigation team advising BlockFi includes Steve Peikin, Jamie McDonald, Julia Malkina, Brad Harsch, Amanda Shami, Francesca Fulchignoni, Caroline Wattenmaker and Justin Zaretzky. The S&C general practice team includes Bob Buckholz, Rick Wertheim, Andrew Gerlach, Tracey Russell, Mario Schollmeyer, Ben Rump and Lauren Hobby. Jeff Hochberg advised on tax matters.