BlockFi had previously encountered difficulties in at least five American states, and the company’s operations in those areas are now in jeopardy. However, according to Prince, they have no plans to classify crypto lending independently, depending on the legislative frameworks of particular states, such as Texas and New York, which have filed complaints against the company.
Prince is sure that the US Securities and Exchange Commission and the Office of Foreign Exchange Control are in charge of dealing with such a problem. They might also open the door for BlockFi-style startup activity. Until then, the startup will not accept the viewpoint of local regulators who say that the company’s client accounts should be classified as securities.
Most crypto-loan businesses give consumers a deposit interest of 4% to 6%, which is several times greater than the offers of the country’s top banks. Not to mention the “peripheral” DeFi protocols, which have much greater percentages. As a result, Prince believes the proposal frightened both skeptics and institutionalists. Although, in his opinion, the United States has a good possibility of being the industry’s pioneer and leader. Even if it takes longer than anticipated.