Block Earner celebrated this ruling as a significant victory for innovation and regulatory clarity, advocating for regulations that accommodate modern financial products.

The court's decision, issued on April 22, 2025, stated that Block Earner's fixed-yield earning product is not classified as a financial product, managed investment scheme, or derivative under the Corporations Act.

Despite the favorable ruling, Block Earner announced it would not revive the Earner product, which was discontinued during legal proceedings, and will instead focus on developing compliant financial solutions for digital finance in Australia.

James Coombes, Block Earner's chief commercial officer, highlighted that the ruling clarifies how crypto assets should be treated under existing laws, emphasizing that their product involved lending for a fixed return without sharing in the investment's upside.

A prior ruling in February 2024 had initially mandated that Block Earner obtain a financial services license, but subsequent judgments in June 2024 cleared the firm of penalties, affirming that it had acted honestly and sought legal advice prior to launching its products.

ASIC contended that Block Earner's 'Earner' product qualified as a financial product requiring licensing under Australian law, but the Court determined it did not meet the necessary legal definitions.

This case originated on November 1, 2022, focusing on whether the Earner product was a regulated investment scheme or simply a loan agreement between Block Earner and its customers.

This ruling underscores the increasing intersection of traditional finance laws with emerging blockchain technologies, indicating that future regulations may need to adapt to the evolving digital asset landscape.

The Australian Full Federal Court has ruled in favor of Block Earner, dismissing an appeal from the Australian Securities and Investments Commission (ASIC) regarding the need for a financial services license for its crypto-related products.

The justices noted that users were lending crypto under fixed terms for interest payments, without pooling contributions, framing the arrangement as a loan rather than an investment.

The court's decision could influence how other cryptocurrency companies design and market their products to comply with Australian financial regulations, reflecting a potential shift in judicial interpretation of laws regarding digital assets.

ASIC has been ordered to cover the costs of the proceedings, including appeals, and is currently reviewing the court's decision.