I know that this sub is for DeFi, so BlockFi may not necessarily be considered as part of DeFi since it’s a centralized exchange. However, I still find it somewhat relevant in the world of DeFi — giving consumers the ability to earn higher yields elsewhere and not having to “earn” interest using the traditional brick & mortar financial industry.
As of 14 February 2022, Americans cannot open up new BlockFi Interest Accounts (BIA) and existing customers using (BIA) may continue to accrue interest on their assets; however, they are unable to deposit any additional assets into their BIA accounts. I was trying to poke around in the r/blockfi subreddit, but so far, it’s just people saying f\*\*\* the government etc. I was wondering if someone here can enlighten me with something other than f\*\*\* the government, big banks are screwing us over, etc.
What are the possible implications of the, hopefully, temporarily discontinuation of BIA products? What are the implications once BlockFi is able to register this product with the SEC going forward?
Any other topics/discussion is welcomed as well.
It seems like many of the people in BlockFi subreddit are only there for the interest and not the company. I’m interested in the company myself and I’m not necessarily running around chasing yield. I know that I can provide stablecoin liquidty on DEXs (with higher APY) and then use their native tokens to farm other stuff.
2 thoughts on “Can I get a non-biased opinion on this matter? BlockFi Interest No Longer Available to new* US Customers.”
BlockFi was never very good anyway. Check out this [APY comparison tool](https://docs.google.com/spreadsheets/d/1vpBQI2DFUk7zXS4TCs9ZOnatvWHiYf5jHjKgKpfJG5Y/edit) that includes rates for almost 200 different coins. You’ll see that BlockFi’s rates are far lesser than some of the others’ anyway.
Edit 2: typo
As far as I can tell the only precedent from this is that Cefi companies need to market their yield-bearing products as securities. BlockFi already has plans to re-release the BIA as BlockFi Yield. It remains to be seen exactly what that account will be like and if the interest, features etc. will be the same.
Beyond that I expect that the SEC will move down the list from platform to platform and hassle / sue everyone they can. They already did it to Coinbase and now Blockfi. Expect other large Cefi platforms to get sued as well.