Reuters reminds what The SEC or the Securities and Exchange Commission has fined BlockFi $ 100 million in regulatory fees. To solve this problem, BlockFi hired the law firm and lobbying firm Arnold & Porter Kaye Scholer.
Why does BlockFi have to pay a $ 100 million SEC fine?
The SEC now has the task of auditing digital assets, a role previously performed by Congress. Thus, its main mission is to register DeFi lending protocols as a product of securities.
As for BlockFi, it is FinTech, which offers interest-bearing cryptocurrency accounts. However, the SEC equates BlockFi interest accounts to unregistered securities. This allegation is often controversial due to the lack of a legal framework specific to cryptocurrency-related securities. To settle the dispute, BlockFi agrees to settle the $ 100 million requested by the SEC, distributing the amount as follows:
- $ 50 million fine for unregistered offers and sales of credit products
- The $ 50 million fine is payable in 32 states as a settlement of charges based on the same facts
This is a record fine in the world of cryptocurrency. The purpose of the SEC is to pass laws through punishment. Thus, it sets a new standard in decentralized finance that other cryptocurrency companies must adhere to.
BlockFi is turning to a lobbying firm to address the SEC
Arnold & Porter Kaye Scholer represents a law firm and lobbying firm in Washington. A team of five has been assembled to help BlockFi adopt appropriate regulatory and tax policies for financial services that use digital assets.
Lobbying is a strategy pursued by an influence group in one sector of activity. With these methods, they seek to defend their own interests before political decision-makers. Cryptocurrency has always been a growth area for lobbying. In 2021 alone, cryptocurrency companies have spent $ 9 million lobbying to discuss industry interests with lawmakers. This is a decision made by many cryptocurrency companies to anticipate possible problems with the SEC.
Considering vague and uncertain norms in In the field of digital assets, many companies operating in this sector are turning to lobbying. In this way, they ensure compliance the latest legislation regulating cryptocurrency in terms of regulation and taxation.
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Interest in investment and financial markets after the business school in Chambery, a passion for cryptocurrencies was obvious. The blockchain is undoubtedly the universal tool of tomorrow.