The Securities and Exchange Commission (SEC) suspended the negotiation of two cryptocurrency tracking products, the Bitcoin Tracker One and the Ether Tracker One, citing the market's confusion as to whether the funds traded on the stock exchange (ETF) as a reason. Both entries are publicly traded on the Nasdaq in Stockholm, Sweden, and both will stop trading until September 20th.
The SEC Is Always Watching
It seems that no matter what we do, the SEC is destined to have a grip on the cryptocurrency market. In recent months, the news has been filled with reports from body officials. Whether it claims both the bitcoins and the non-Ethereum bonds, to repeatedly get investors' hopes about the funds traded in bitcoins (ETFs), the SEC and the encrypted market seem to be united with fashion. As long as encryption exists, the SEC will be present to supervise it.
Apparently, the problem surrounding both products comes from some investors and enthusiasts who believe that products are ETFs. Both keep track of the prices of these cryptocurrencies minus their commissions and trade "over the counter" in transactions occurring outside the US trade
SEC issued a statement, explaining:
"There seems to be a lack of current, consistent and accurate information The application materials submitted to allow the offering and sale of these financial products in the United States, as well as certain trading websites, characterize them as "exchange-traded funds". The Commission believes that the public interest and investor protection require a suspension of trading in the above-mentioned company shares. "
Some historians to be ruminated
Both bitcoins and Ethereum were classified as non-security entities to May with great relief from most investors. Bitcoin was thought to be a commodity, and therefore should be in the "hands and care" of the Commodity Futures Trading Commission (CFTC). Ethereum, on the other hand, initially started as a pre-sale currency, but has since become so decentralized that it can not fall into the securities category.
The SEC has since overseen many applications for bitcoin ETFs and has turned down virtually every one, including a submission by the Winklevoss twins of the Gemini Exchange in New York. However, the only application that still has someone who thinks there is a possibility is the one presented by VanEck SolidX.
The decision on whether or not to approve the application is scheduled for September 30 – only 20 days from now, given the organization does not postpone things further. The application has been the subject of much debate among the governors of the SEC since it was published for public comment to see how investors would react.
Continuing Its Investigation
In addition, the SEC has collected information and opinions from alleged "industry experts" "Regarding what the next maneuver should be in. This is the furthest thing the SEC has ever adopted with a & # 39, such application, although it was certainly a difficult road for VanEck SolidX.This is their third time trying to get an approved presentation, with the first two attempts to be rejected almost instantly.
Hey, Hey! I have, I! The ICO have to go!
In addition, the body has sought information and data from various institutions, companies, start-ups and corporate initiatives that have somehow participated in ICO operations and similar cryptocurrency agreements. The SEC considered that some of these events were "potentially illegal" due to their alleged lack of registration (i) with the organization.
William Hinman – head of the Corporate Finance division for the SEC – commented:
"Central to determine if a stock is sold is how it is sold and the reasonable expectations of buyers."