Catenaa, Wednesday, May 28, 2025-Australia’s top financial regulator is seeking special leave to appeal to the High Court after a major legal setback in its case against crypto lender Block Earner, challenging the classification of crypto yield products under the country’s financial laws.
The Australian Securities and Investments Commission filed an application with the High Court to overturn an April ruling from the Full Federal Court, which found that Block Earner’s fixed-yield product did not constitute a financial product under the Corporations Act.
That decision dismissed ASIC’s bid to impose penalties and ordered the regulator to cover Block Earner’s legal costs.
ASIC is now asking the High Court to clarify whether interest-earning and asset-conversion crypto products should fall under the financial products framework.
The regulator said it is seeking clarification in the public interest, emphasizing that the law’s definition of financial products is “broad and technology-neutral.”
Under Australian law, special leave is required for High Court appeals, and is only granted in cases that raise significant legal issues or matters of public concern.
Block Earner, operated by Web3 Ventures Pty Ltd, has since closed its Earner product and indicated it has no intention to revive it. The company maintained the product allowed users to loan crypto under fixed terms without exposing them to pooled risks or business operations.
The High Court has not yet scheduled a hearing date on ASIC’s application. The legal battle comes amid broader regulatory reforms aimed at tightening oversight of Australia’s digital asset market.
