BlockFi has received another cease and desist order for offering unregistered securities; this time, in the state of Kentucky.\u00a0 The Kentucky Department of Financial Institutions (DFI) issued the cease and desist order on July 29th and unlike the cease and desist that the New Jersey Attorney General issued to BlockFi, the letter from Kentucky specified why they believed BlockFi Interest Accounts are unregistered securities. "A recent DFI investigation found Blockfi is offering securities in the form of investment contracts in relation to the deposit of virtual currencies with the company. The firm, which is headquartered in New Jersey, has not registered these securities with the Kentucky DFI or the Securities and Exchange Commission, as required by law," said the official statement. Kentucky is the 5th state to take action against BlockFi over its Interest Accounts. New Jersey, Vermont, Alabama, and Texas have all issued show-cause orders\u2013a court order that requires its recipient to justify, explain, or prove something to a court\u2013or cease and desist orders against BlockFi. A precedent for DeFi companies When BlockFi received the cease and desist order from Kentucky\u2019s DFI, it responded in the same way that it did to the four other states that have addressed BlockFi Interest Accounts\u2013by stating that BIA\u2019s are not unregistered securities.\u00a0 \u201cWe firmly believe that BIA is lawful and appropriate for crypto market participants, and we remain steadfast in our commitment to fight for consumer rights to earn interest on their crypto-assets,\u201d said BlockFi. \u201cBut in light of the order , BlockFi will stop accepting new BIA clients residing in KY immediately.\u201d BlockFi has a finite amount of time to respond to the show cause orders in Vermont, Alabama, and Texas, and until September 2nd before the cease and desist order in New Jersey becomes effective.\u00a0 Financial regulators around the world at the local, state, and federal levels are taking a closer look at the emerging blockchain and digital currency industry. Policymakers are creating laws and regulations that mitigate the amount of risk that their citizens and residents face when putting money into the blockchain and digital currency markets.\u00a0 Never before have we seen regulators scrutinize a digital currency company for a decentralized financial product that allows individuals to earn interest on the digital currency they stake on the platform. The outcome of these court orders against BlockFi and its Interest Accounts is bound to set a precedent for the industry and the companies that provide similar services.