We are pleased to share that today we have reached an agreement with U.S. federal and state regulators – outlining a clear path forward for BlockFi and for Americans to earn crypto interest. Today’s resolution
outlines the finer points of that agreement, and we wanted to share some additional context with you all.
At BlockFi, we envision a world where blockchain powered financial products and services accelerate prosperity worldwide by providing more access and better economic outcomes. We are proud to have reached this agreement which creates a foundational path forward for our U.S. clients and the wider crypto industry.
What’s along this path?
Put simply – increased regulatory clarity we’ve been hoping for. We were the first crypto company to receive a state-level license to issue crypto-backed loans to U.S. consumers in 2018 and this is the next major example of how we prioritize cooperation with regulators.
With today’s resolution, we are leading the creation of a new regulatory landscape for crypto and our clients. As we shared earlier
, we intend to file or confidentially submit a registration statement to the SEC for BlockFi Yield
, a new crypto interest-bearing security.
What does this mean for you – our clients?
Existing U.S. BlockFi Interest Account (BIA) clients will maintain their accounts and will continue to receive interest as they always have. BIA clients based in the United States may not add further assets into their BIAs. Once the BlockFi Yield registration statement is declared effective by the SEC, BIAs of U.S. clients will be exchanged for BlockFi Yield and you will be able to add incremental assets to your account, unless clients instruct us otherwise.
All U.S. clients will receive an email and in-product communications with further details on changes to their client experience. If you have questions, please contact our Client Success team here
Existing and prospective BlockFi clients outside of the U.S. are unaffected by these changes and continue to have full access to the platform, including opening new BIAs and adding assets to existing BIAs.
The path to broad crypto adoption is one that has included some mountain top views (the latest all time high!) and deep valleys (brr… crypto winter) over the years. We have worked tirelessly with regulators on your behalf to chart this exciting path forward, and we look forward to our next chapter of pioneering innovative, crypto-powered products for our clients worldwide.
We thank you for continuing on this journey with us and will continue working hard to deliver more value to you through our products and services.
Zac, Flori and the BlockFi Team
This communication does not constitute an offer to sell or the solicitation of an offer to buy BlockFi Yield or BIAs, and shall not constitute an offer or sale in any jurisdiction in which such offer or sale would be prohibited. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). We have not yet filed or confidentially submitted a registration statement with the SEC and there can be no assurance that such a registration statement, when filed, will be declared effective.
The BIAs have not been registered under the Securities Act and may not be offered or sold in the United States, to U.S. persons, for the account or benefit of a U.S. person or in any jurisdiction in which such offer would be prohibited.
This communication contains “forward-looking statements”. which involve risks and uncertainties. You should not place undue reliance on forward-looking statements because they are subject factors which are difficult to predict. These forward-looking statements are generally identified by the use of “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “target,” “will,” “would” and similar expressions. Risks and uncertainties include, but are not limited to: anticipated trends and challenges in our business and the crypto ecosystem; our ability to comply with the terms and undertakings in the SEC and state settlements discussed above; and our ability to register the BYs with security regulators. We do not undertake to update any forward-looking statement as a result of new information or future events or developments.