According to a report, a recent issue raised by the regulators of United States against BlockFi’s future move in Defi space, which can hurt the financial system.
In recent weeks, we saw New Jersey, Vermont, Alamanda & Texas regulators raise their issues against BlockFi lending platform. Almost all the regulators emphasized on the point of Interest bearing account securities of BlockFi platform & they declared it as an unfair way to operate the services. Now BlockFi is facing another regulatory heat from the U.S regulators.
Reportedly, U.S regulators admitted that Interest bearing account facility of BlockFi lending platform is almost permissible because of the federal regulations targeted at the cryptocurrency loan market.
According to regulators, Centralised crypto lenders are focusing toward the decentralized model to shift their services. And it could be something not admissible. Because in the present time a discussion is going on in between the U.S regulators that is ” financial 9/11. Regulators fear that this market can move toward autonomous systems Defi and it can hurt the financial system badly.
MakerDAO founder Rune Christensen stated that the United State’s crackdown on the Defi market will be 10 times restricted than China’s Crackdown on crypto market. Because they U.S regulation authorities are not in mood to adopt
So here, raised issues are based on the probability that BlockFi may move in Defi. But the issue raised here is clear indication that BlockFi is going to be a more Centralised & controlled crypto lending platform under the restriction of many regulators.
It is worth noting that New Jersey, Vermont, Alamanda & Texas regulators are only raising issues against the Interest bearing account system ( as a form of securities). But here U.S regulators believed that it is not unfair. So here it is mandatory for all these regulators to come together and find out what the actual problem is with the BlockFi services that are actually not permissible . Here it may be possible that all these regulators of different countries are interacting people’s attention.
Read also : Bitpay will support Litecoin globally