The Australian Securities & Investments Commission (ASIC) has applied for special leave to the High Court to appeal a Full Federal Court decision that Block Earner’s product allowing consumers to earn fixed-yield returns by lending specified crypto-assets was not a financial product. ASIC is seeking a High Court ruling on the scope of the definition of “financial product”, including when interest-earning products and products involving a conversion of assets from one form to another are regulated. The application follows litigation in which the Federal Court found Block Earner engaged in unlicensed financial services conduct when offering its “Earner” product from March to November 2022, but later relieved the firm from liability to pay a penalty, and dismissed ASIC’s allegations that a separate variable-yield offering, “Access”, was a financial product. On 22 April 2025, the Full Federal Court allowed Block Earner’s cross-appeal and dismissed ASIC’s appeal. ASIC argues the financial product definition was drafted to be broad and technology-neutral and that clarification would apply across financial products and services beyond crypto-assets. The High Court will consider ASIC’s special leave application on a date yet to be determined.
Australian Securities & Investments Commission 2025-05-21
Australian Securities & Investments Commission seeks High Court appeal on whether Block Earner fixed-yield crypto lending product is a financial product
ASIC seeks High Court leave to appeal a Full Federal Court decision that Block Earner's fixed-yield crypto-asset product isn't a financial product. ASIC wants to clarify "financial product" to include interest-earning and asset conversion products, after a Federal Court found Block Earner engaged in unlicensed financial services but relieved it from penalties. The Full Federal Court dismissed ASIC's appeal, prompting the High Court application.