BlockFi, a cryptocurrency company, said Monday that it agreed to pay $100 million in U.S. Securities and Exchange Commission and other states for settlements related to its cryptocurrency loan product.

BlockFi was founded by Silicon Valley investor Peter Thiel. It claims it is a platform that can be used to create cryptocurrencies banks. A popular savings product allows clients to accrue interest on the digital currency that they own.

BlockFi claims annual percentage yields of up to 9.25%. This is significantly higher than average savings rates offered by incumbent financial institutions. BlockFi claims it can offer these rates because institutional investors large enough to be able to loan the funds are more willing to spend.

BitcoinHowever, crypto assets and digital assets aren’t regulated. Authorities have become concerned about the lack of supervision for services related to crypto that closely resemble financial products that are regulated.

Monday’s SEC statement stated that BlockFi was charged with failing to register BlockFi’s retail crypto-lending product, BlockFi Interest accounts, as well as violating the Registration Provisions of the Investment Company Act of 40.

BlockFi paid $50 million to the SEC to resolve the charges. It did not admit to wrongdoing nor accept liability. The SEC will pay $50 million more to 32 other states for similar charges.

Gary Gensler (SEC Chair) stated, “This case is unique in its type with regard to crypto lending platforms.” “Today’s settlement is clear that crypto market must adhere to the time-tested securities law.”

BlockFi announced that U.S. clients will not be allowed to open any new interest accounts after the settlement. The company stated that clients can still receive interest on existing assets, but they cannot add any new assets to their accounts.

BlockFi has announced that it will now apply to register with SEC in order to launch a crypto savings product called BlockFiYield. The company said it will eventually migrate existing U.S. users to the new service, except that they opt not to. BlockFi stated that the move gives the industry “regulatory certainty”.

BlockFi founder Zac Prince, CEO of BlockFi said that “from the moment we founded BlockFi we knew that strong engagement would be crucial for the adoption financial services powered with cryptocurrencies.”

“Today’s milestone is yet another example of our pioneering efforts in securing regulatory clarity for the broader industry and our clients, just as we did for our first product – the crypto-backed loan,” he added.

SEC issued another warning to crypto lenders offering services similar to BlockFi’s. Gurbir S. Grewal (director of agency’s enforcement section) said that they should “take immediate notice” of today’s resolution, and comply with federal securities laws.

Watchdog reportedlyBloomberg reported that Voyager Digital and Gemini were being analyzed as part a probe into the practice of crypto lending. The three companies all stated that they cooperate with regulators.

In the last year CoinbaseAfter the SEC threatened legal action, the SEC forced the company to abandon plans for its interest-earning cryptocurrency product. Brian Armstrong, the CEO of crypto exchange, started a Twitter spat with SEC officials, accusing them of “sketchy behavior”

BlockFi was founded in 2017 and has received over $500m in venture capital to date according to CB Insights data. Its last private valuation was $3 billion.