The US Securities and Exchange Commission (SEC) notifies the investors about the risks associated with interest-yielding crypto accounts. The investors must be well aware of the ‘uncertainty accounts paying interest on crypto-asset deposits.’ The warning corresponds to the 1st prosecution plans of the agency that’s against crypto lending platforms. SEC Cautions About Risks Linked with Interest-Bearing Crypto Accounts On Monday, the US Securities declared about the risks associated with a crypto investor account. This announcement was to inform the investors about risks with accounts that pay interest on crypto-asset deposits. On Monday itself, the SEC further announced that it has invoiced cryptocurrency lending platform Blockfi for failing to make a record of its crypto lending service. Blockfi has said ‘yes’ to reimburse $100 million as a penalty amount. Blockfi has agreed to settle the charges with the SEC and 32 state regulators. The SEC clarified that ‘a benefiting crypto account with high yielding interest asset holdings is unsafe; because of bank or credit union deposits.’ Lately, the securities watchdog recognized banks and credit alliances being controlled by both federal and state banking actuators. Moreover, deposits at banks or federal credit unions are financed by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA). Alert Issued By SEC Firms that provide interest-bearin...
