NJ Regulators Give BlockFi 1 Week Before Blocking New Interest Accounts

New Jersey regulators give crypto lender BlockFi an extra week before its ban on setting up new interest-bearing accounts takes effect, CEO Zac Prince said tweeted Wednesday.

Prince said the New Jersey Securities Office (NJ BOS) “postponed the effective date” of Tuesday’s surprise order to stop the sale of BlockFi interest accounts until July 29 . Originally, the order was to strike on July 22.

NJ BOS Claims BlockFi Interest Accounts Are Unregistered Titles; BlockFi claims not.

Related: SEC Chairman Hints Some Stablecoins Are Securities

The extra week gives BlockFi time to navigate the ramifications of the regulator order. Having said that, it could be a big blow to the crypto lender. NJ BOS said BlockFi holds $ 14.7 billion in assets through its BIA product. (The amount held by New Jersey consumers is unclear.)

The Prince of BlockFi has repeatedly stated that the cease and desist will not affect existing BlockFi customers, a claim the NJ BOS order appears to echo.

However, it is less clear to what extent this could impact new BlockFi customers and if its impact could extend beyond New Jersey.

BlockFi declined to comment further. NJ BOS did not immediately comment.

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