The New Jersey Board of Securities postponed their BlockFi cease and desist order again today. Before, the effective date was September 30th. Now it is pushed back to December 1st, 2021.

Coinbase recently dropped plans for a lending feature where investors would get paid interest. Blockfi's 'Interest Accounts' behave very similarly.

BlockFi is fighting to keep their Interest Accounts going. I hope they win. Would be pretty huge for the crypto industry.

BlockFi's argument is probably that banks lend out what they receive in deposits, but your bank account at Chase isn't considered a security.

The SEC's argument is probably that "an investment contract" is a security and that BlockFi's interest accounts are 'an investment contract' because it is "the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others."

I know banks hardly pay anything in interest... but they do pay interest. So why isn't a bank account a security then?