SEC Suspends Trading In Bitcoin and Ethereum Products
The US Securities and Exchange Commission (SEC) has reportedly issued an order that aims to stop the trading in Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), which are two investment products that track cryptocurrencies. The two investment products are issued by Swedish company XBT Provider AB that is a subsidiary of UK-based Coinshare Holdings. The two products have reportedly been listed on the Nasdaq Stockholm exchange since 2015 and were made available on the US market last month under the ticker CXBTF. The latter is said to allow local investors to access and invest in the crypto ETNs in an over-the-counter (OTC) market with their US dollar. SEC (https://www.sec.gov/about.shtml) claims that its mission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. The regulator adds they try to promote an environment that`s worthy of the public`s trust. On Twitter, SEC made the announcement on September 9, 2018: https://twitter.com/SEC_News/status/1038909954265165824 Seems like the SEC is convinced that it is in the public interest to suspend trading in the securities of the company, as the regulator told CCN (https://www.ccn.com/sec-suspends-trading-in-bitcoin-and-ethereum-investment-products/). Elaborating on their decision, the SEC noted in their official order (https://www.sec.gov/litigation/suspensions/2018/34-84063-o.pdf): “It appears to the Securities and Exchange Commission (SEC) that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One (Ticker Symbol: CXBTF) and Ether Tracker One (Ticker Symbol: CETHF), issued by XBT Provider AB (publ), a Swedish company headquartered in Stockholm, resulting in confusion amongst market participants regarding these financial instruments.” Yet, it should be noted that it`s a temporary suspension that`s about to last until 11:59 EDT on September 20. It looks like it`s incredibly difficult for regulators around the world to craft proper regulations for trading digital currencies and making investments in such virtual currency products and services. Firstly, it may be a risky endeavor because regulators have difficulties in checking the full background of the people and organizations behind these digital currencies, ICOs, and other products. Additionally, perhaps, not knowing the market so well might make it even more difficult for them to issue reasonable guidelines that don`t stifle innovation. Is there a solution? If yes, what is it? Share your opinion and experiences with cryptocurrency and regulation in the comments below. Read the full article