The CEO of BlockFi, which is facing regulatory issues, said cryptocurrency lending services will survive despite pressure from authorities.
In the summer, the Attorney General of New Jersey demanded that BlockFi, a cryptocurrency loan service, cease operations in the state no later than July 22, 2021. The lockdown was later pushed back to the fall, but New Jersey’s demands were supported by the states of Vermont, Alabama and Texas.
BlockFi CEO Zac Prince commented on recent regulatory concerns. He said the cryptocurrency lending industry would need guidelines from the federal government and state-level initiatives would not kill the sector.
“We’re not going to decide what type of lending our service is based on what New Jersey does, or Texas, or what any other state does. This will be decided by federal regulators – SEC or OCC, who will create rules to regulate our activities, ”he said at the SALT SkyBridge Capital conference.
BlockFi insists that the service’s proposed interest-bearing transactions are not subject to securities laws, while state regulators have argued otherwise. Fighting the authorities could lead to clearer regulation of the sector, Prince said. “There needs to be clarity at the national level,” he said.
Prince states that cryptocurrency loans are a service that the American consumer needs. Cryptocurrency loans are useful for both clients and the entire cryptocurrency market. According to Prince, the United States should lead the development of this industry, even if it does not happen overnight.
“I think we are now in a productive dialogue,” Prince commented on the status of communication with regulators.