BlockFi is under fire from a second U.S. state over concerns its interest-bearing crypto accounts may be unregistered securities.

  • Late Wednesday, the Alabama Securities Commission asked crypto lender BlockFi to show why it should not be required to stop selling unregistered securities in the state.

  • The commission alleges that BlockFi has funded cryptocurrency lending and proprietary trading at least in part through the sale of unregistered securities.

  • BlockFi Interest Accounts (BIAs) are not registered with the regulator, the commission said Wednesday.

  • The company has 28 days to respond.

  • In a tweet, BlockFi said that it believes its products are lawful and appropriate and that BIAs are not securities.

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