The New Jersey Securities Bureau has postponed the effective date of the BlockFi lockdown order to September 2.
BlockFi tweeted Wednesday that the restrictions on the company in New Jersey have been postponed until September 2.
The postponement granted stems from ongoing negotiations between BlockFi and the New Jersey Securities Bureau “to provide more information on the BIA.”
An update on regulatory conversations: pic.twitter.com/0TYqSfBk4i
– BlockFi (@BlockFi) July 28, 2021
BlockFi CEO Zac Prince called the event “potentially good news”:
“We have said over and over that the key to the success of our industry is consistent regulation. We see this as an opportunity for BlockFi to help define the regulatory environment. for our ecosystem. ”
Earlier, the Attorney General of New Jersey demanded that BlockFi cease operations of the company in the state no later than July 22, 2021.
According to the regulator, BlockFi cryptocurrency lending service violates state laws and offers clients unregistered securities in the form of interest-bearing investment accounts.
“Our rules are simple: if you sell securities in New Jersey, you must comply with New Jersey securities laws,” said then Acting Attorney General Andrew J. Bruck.
New Jersey’s claims were supported by the states of Vermont, Alabama and Texas. Last week, regulators in these states launched investigations against BlockFi and its two subsidiaries, BlockFi Lending and BlockFi Trading.