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  • BTCBitcoin$6,615.28-1.13%
  • ETHEthereum$234.72-3.23%
  • LTCLitecoin$58.48-3.89%
SEC Halts Trading In Two Cryptocurrency Products, Citing Mar...
Bitcoin News

SEC Halts Trading In Two Cryptocurrency Products, Citing Market ‘Confusion’

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission said on Sunday it was immediately suspending trading in two investment products that track cryptocurrencies, citing “a lack of current, consistent and accurate information.”

The SEC said in a statement that trading in Bitcoin Tracker One <CXBTF.PQ> <CXBTF.PK> and Ether Tracker One <CETHF.PQ> <CETHF.PK> would be halted in the United States until at least Sept. 20, and added that there was “confusion” in the markets over whether the products were exchange-traded funds or not.

The statement read:

The Securities and Exchange Commission (“Commission”) announced the temporary
suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange
Act”), of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One
(“CETHF”) commencing at 5:30 p.m. EDT on September 9, 2018, and terminating at 11:59 p.m.
EDT on September 20, 2018.
The Commission temporarily suspended trading in the securities CXBTF and CETHF because of
confusion amongst market participants regarding these instruments. This order was entered
pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).
The Commission cautions broker-dealers, shareholders, and prospective purchasers that they
should carefully consider the foregoing information along with all other currently available
information and any information subsequently issued by the company.
Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the
Exchange Act, at the termination of the trading suspension, no quotation may be entered unless
and until they have strictly complied with all of the provisions of the rule. If any broker or dealer
has any questions as to whether or not he has complied with the rule, he should not enter any
quotation but immediately contact the staff in the Division of Trading and Markets, Office of
Interpretation and Guidance, at (202) 551-5777. If any broker or dealer is uncertain as to what is
required by Rule 15c2-11, he should refrain from entering quotations relating CXBTF or CETHF
securities until such time as he has familiarized himself with the rule and is certain that all of its
provisions have been met. If any broker or dealer enters any quotation which is in violation of
the rule, the Commission will consider the need for prompt enforcement action.

Many Crypto enthusiasts dismissed the significance of the action while some referred to it as “FUD”. The cryptocurrency market didn’t seem to reach much to this statement as prices remained quite stable as of time release.

It remains unclear what this statement from SEC means in the long run. A sign of something to come?

coinmag

Editor-in-Chief @Coindaily_co and Bitcoin enthusiast

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