ASC representatives stated that the BTC accounts of the BlockFi startup can be classified as unregistered securities.
Alabama's financial control appears to have chosen to follow the lead of the US SEC in its lawsuit against Ripple, announcing that accounts with BTC holdings controlled by BlockFi could be considered unregistered securities. Thus, Alabama will be the second in the list of those who are trying to impose certain restrictions on the activities of the firm. Earlier, the Attorney General of New Jersey said that the firm must immediately end the flow of new consumers.
But, before forming a claim, the Alabama regulator decided to contact BlockFi's management, asking them to name at least one reason why the department should refrain from forcibly terminating the firm's activities related to the purchase of unregistered securities.
Based on the reports, the demand for the services proposed by the BlockFi team guaranteed it approximately $15B. The ASC also drew attention to the fact that BlockFi users can receive up to 8.5% from holding cryptocurrencies. It was about custom assets in the equivalent of USDT, BTC, and LTC.
BlockFi immediately reacted to the potential accusation from the policy, stating that user accounts can't be regarded as a form of shares, and also stressed that the firm took into account the ASC warning. Now the company has 28 days for a detailed official response to the department.