New Jersey regulators (NJ BOS) are giving BlockFi an extra week before its ban on new interest-bearing accounts, CEO Zac Prince tweeted Wednesday.
Prince said New Jersey’s Bureau of Securities “has postponed the effective date” of Tuesday’s surprise order to stop the sale of BlockFi interest accounts until July 29. Originally, the order was set to hit on July 22. The order does not impact any of BlockFi’s current BIA clients or any of our other products.
The extra week buys BlockFi some time to navigate the ramifications of the regulator’s order. That said, it could be a body blow to the crypto lender. NJ BOS has said BlockFi holds $14.7 billion in assets through its BIA product.
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“We have been engaged in an ongoing and productive dialogue with the New Jersey Bureau of Securities (NJ BOS) to provide more details about the BlockFi Interest Account (BIA), which we believe is lawful and appropriate for crypto market participants.” tweeted Zac.
Less clear, however, is the extent to which this could impact new BlockFi customers, and whether its impact could spread beyond New Jersey.
BlockFi declined to comment further. NJ BOS did not immediately comment.
