Zac Prince: BlockFi awaits US government decision on crypto loans
BlockFi has faced increased scrutiny from the SEC lately. Therefore, one of the founders of a technology startup, Zac Prince, said that he expects the SEC to carefully assess lending using cryptocurrencies.
BlockFi is optimistic about the viability of the crypto loan industry. According to the company, it will survive regardless of the destructive measures applied to it by the state.
Previously, BlockFi faced difficulties in at least five American states, and the fate of the company's activities in their territory is now in question. However, according to Prince, they do not intend to independently engage in the classification of cryptocurrency lending based on the regulatory frameworks of individual states be it Texas or New York, which have filed accusations against the company.
Prince is confident that dealing with such an issue is the prerogative of the US Securities and Exchange Commission, as well as the Office of Foreign Exchange Control. They can also pave the way for a startup activity similar to BlockFi. Until then, the startup does not intend to accept the point of view of local regulators who argue that client accounts offered by the company should be defined as securities.
The fighting at the federal level, according to Prince, only exacerbates the plight of the cryptocurrency industry. In addition, acting in the best interests of investors, the SEC and others should pay attention to what American consumers want, whom they, according to their regular statements, strive so hard to protect. The BlockFi co-founder believes that if consumers are interested in cryptocurrency loans, regulators have a responsibility to ensure unimpeded access to them and proper regulation, and not hack to death.
Most crypto-loan services offer clients a yield of 4% to 6% on deposits, which is several times higher than the offers of the largest banks in the country. Not to mention the "peripheral" DeFi protocols, the percentages of which are often even higher. Prince thinks the proposal scared skeptics and institutionalists alike. Although, in his opinion, the United States has every chance of becoming a pioneer in the industry, leading it. Even if it takes a little longer than expected.