SEC Suspends Trading in Bitcoin & Ethereum Investment Products
The controller indicated “an absence of present, reliable and precise data” in the two crypto speculation vehicles issued by Swedish firm XBT Supplier Stomach muscle following their entrance into the US advertise a month ago.
The U.S. Securities and Trade Commission (SEC) on Sunday issued a request to stop the exchanging Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), two venture items that track cryptographic forms of money. The two trade exchanged notes (ETNs) are issued by Swedish organization XBT Supplier Stomach muscle, an auxiliary of U.K.- based Coinshares Possessions.
The two items have been recorded on the Nasdaq Stockholm trade since 2015 and entered the U.S. advertise a month ago under the ticker CXBTF, empowering local speculators to get to and put resources into the crypto ETNs in an over-the-counter (OTC) showcase with their U.S. dollars.
“The broker-dealer application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as ‘Exchange Traded Funds’,” the SEC elaborated, explaining its decision in its official order. “Other public sources characterize the instruments as ‘Exchange Traded Notes.’ By contrast, the issuer characterizes them in its offering materials as “non-equity linked certificates.’”
The regulator said:
“The Commission is of the opinion that the public interest and protection of investors require a suspension of trading in the securities of the above-quoted company.”
The SEC guaranteed the ETNs’ essence in the U.S. advertise brought about “disarray among showcase members”, bringing about the impermanent end. The suspension started at 1730 EDT on Sunday, September 9 and will keep going until 11:59 EDT on September 20.