The Australian Securities and Investments Commission (ASIC) has escalated Block Earner’s legal action. It has formally requested special leave matching the High Court of Australia to appeal against a recent Federal Court decision. This case could set a landmark precedent on how the nation defines and regulates financial products of the crypto space.
The legal battle concerns Block Earner’s “Earner” product, which has already been discontinued. That product offered investments that were linked to fixed returns on crypto assets. In April 2025, the Full Federal Court found that the product did not constitute a financial product for the purposes of the Corporations Act. The win was a welcome relief to the company, which has been embroiled in a legal battle with ASIC since 2022. According to ASIC, the issue raised is a wider legal one such as the definition of financial products. The regulator stated that the Corporations Act was designed broadly and was technology-neutral, and the existing ambiguity risks impacting effective oversight.
ASIC noted in a statement, “This clarification is important not only for crypto but for all financial products and services in Australia.” “A ruling from the High Court would clarify and unify.”
Block Earner welcomes the earlier Federal Court ruling and describes the decision as “strong and well-reasoned.” According to a company representative, the legal question goes far beyond Block Earner itself and impacts the future of financial innovation in Australia.
The spokesman stated, “We remain confident in our position & will respond to ASIC’s application in the appropriate forum.”
Block Earner has stated it will not relaunch the “Earner” product even though the company won in court. The company is now focusing on crypto-backed financial services that follow the rules, not a stablecoin.
The argument began in November 2022 when ASIC first accused Block Earner of providing financial services without a license. In February 2024, a court decision was initially in favor of ASIC. However, a later decision in June noted that Block Earner acted honestly and consulted lawyers ahead of the product launch. Hence, no penalties were imposed.
The requirement for the financial services license was later appealed by Block Earner and resulted in a positive April 2025 decision. ASIC wants the case to be overturned in the High Court, and this may have serious implications for the regulation of fintech and possibly the future of digital money in Australia.
