SEC warns investors about interest-bearing cryptocurrency accounts

The Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy announced Monday that they have jointly issued an investor advisory “to educate investors about the risks of accounts that pay interest on deposits with crypto assets. ". The SEC explained that “companies that provide interest-bearing accounts for crypto assets do not offer investors the same protections as banks or credit unions, and crypto assets sent to these firms are not currently insured.” On the same day, the U.S. The Securities and Exchange Commission announced that it has charged cryptocurrency lending platform Blockfi for not registering its cryptocurrency lending products. And Blockfi has agreed to pay a $100 million fine to settle charges with the SEC and 32 state regulators.