BlockFi agreed to pay a US$50 million penalty to settle the SEC charges and ceased its unregistered offers and sales of BIAs. BlockFi further agreed to attempt to bring its business within the provisions of the 1940 Act within 60 days. BlockFi's parent company recently announced that it intends to register under the Securities Act of 1933 the offer and sale of a new lending product. 21 Although Blockfi is the first case of its kind brought by the SEC with respect to a crypto lending platform, it may be a harbinger of things to come, particularly as the SEC has expressed eagerness to regulate the crypto market and recently almost doubled the size of the Division of Enforcement's Crypto Assets and Cyber Unit. On 7 September 2021, Coinbase Chief Executive Officer (CEO) Brian Armstrong announced that the company is under investigation by the SEC due to its cryptocurrency lending practice. Mr.