Securities law enforcement actions concluded against BlockFi Lending LLC in February imposed a hefty $100 million in penalties, but it did something even more consequential for the crypto sector as a whole.
The Securities and Exchange Commission laid out its approach to regulating an emerging line of business—digital asset borrowing and lending platforms, aka crypto lending—and applied a federal securities law heretofore rarely discussed in the context of cryptocurrencies: the Investment Company Act of 1940, often shortened to the 40 Act.
BlockFi’s Securities Law Problems
Crypto lending is one part of a range of emerging cryptocurrency financial services. It is ...
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