Blockfi faces sec scrutiny over highyield

SEC chair Gary Gensler has continuously highlighted the DeFi lending sector as one area that federal officials scrutinize. The entire crypto industry faces a harsh stance from regulatory bodies in the US. Crypto Continues To Face Regulatory Backlash In The US To continue participating in the Celsius earn, investors must have a minimum annual income of $200,000 or a net worth of over $1 million. It also came after regulators forced Coinbase (NASDAQ: COIN) to shut down its lending program despite close ties with law enforcement agencies. It happened in the same week BlockFi settled with the SEC and state securities regulators to the tune of $100 million.

The timing of the policy change could not be any more conspicuous. The decision came after further scrutiny by the Securities and Exchange Commission (SEC) over its products and services in the crypto lending sector. Subsequently, Nexo in February announced a set of policy changes for US customers. The companies affected were Nexo and Celsius, although this was revealed inadvertently. In 2021, New York Attorney General Letitia James announced cease and desist letters to two cryptocurrency lending firms. The latest development sees the crypto lending platform Celsius join Nexo and BlockFi in placing restrictions on US traders using their platform. Celsius Joins its Competition, BlockFi And Nexo, In Facing Regulatory Pressure Over Lending Products

Now, the rates on offer are as high as 18%, with stablecoins giving more than 7% returns. On the other hand, existing deposits will continue to earn regular interest. However, these accounts would not be paid interest unless the account owners are considered accredited investors. 15, new deposits from US users will be transferred to custody accounts by the crypto lender. This is part of sweeping changes that the platform is implementing to its Earn product following conversations with regulators.Д¬onsequently, starting from Apr. Continued regulatory scrutiny forces Defi yield platform Celsius to discontinue its Earn product for non-accredited US investors following Nexo and BlockFi's steps.ДeFi platform Celsius has announced that US investors would be unable to earn rewards on its platform unless they are accredited.

Blockfi faces sec scrutiny over highyield