According to Coindesk, the Texas Securities Commission (TSSB) has applied for a Cease-and-Desist order for BlockFi, BlockFi Trading, and BlockFi Lending, as BlockFi’s interest account (BIA) product is considered to be unregistered securities in this state.

The regulator hopes to discuss whether to issue the order at the October 13 hearing. The document gives BlockFi the opportunity to formally respond to the allegations, and BlockFi will be allowed to continue to operate until the end of the hearing. 

Both Alabama and New Jersey regulators have accused BlockFi's BIA may violate state securities laws.

By Mary Liu