New Jersey regulators grant crypto lender BlockFi an additional week before its ban to create new interest-bearing accounts does not take effect, said CEO Zac Prince tweeted on Wednesday.
Prince said the Office of New Jersey Securities (NJ BOS) "postponed the effective date " of Tuesday's surprise order to halt the sale of interests in BlockFi accounts until July 29. A the origin, the order was due to arrive on July 22.
NJ BOS maintains that BlockFi Interest Accounts amount to unregistered titles; BlockFi claims not .
The extra week gives BlockFi time to navigate the ramifications of the regulator order. That said, it could be a big blow to the crypto lender .NJ BOS said BlockFi has 14.7billion dollars 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 does not 'not affect existing BlockFi customers, a claim that the NJ BOS command seems to echo.
However, it is less clear to what extent this could impact new BlockFi customers and if I its impact could extend beyond New Jersey.
BlockFi declined to comment further. NJ BOS did not immediately comment.