At issue is an investment product called the BlockFi Interest Account, which promises high returns in exchange for banked cryptocurrency, such as .
New Jersey was the first state to go after BlockFi for its alleged dealings in unregistered securities, filing a cease-and-desist earlier this week. Just yesterday, Alabama regulators hit the company with a show-cause notice—essentially a threat, asking BlockFi to defend itself against a potential cease-and-desist.
In a tweet yesterday, the company wrote that “the BlockFi Interest Account is not a security.”
[2/2] Our stance hasn't changed – the BlockFI Interest Account is not a security.
A judge at the State Office of Administrative Hearings (SOAH) will decide in October whether BlockFi can continue operating in Texas.