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The United States Securities and Exchange Commission (SEC) announced that it has suspended the negotiation of two investment products that track of cryptocurrencies because there is confusion over whether they are publicly traded funds (ETFs).
The suspension in the trading of Bitcoin Tracker One and Ether Tracker One, which both claim to track the price of cryptocurrencies, will be in place in the United States at least until 20 September. Both are traded on a Nasdaq stock exchange in Stockholm and trade "over the counter" in transactions that occur outside of US domestic exchanges.
"It seems … that there is a lack of current, consistent and accurate information," the SEC said in a statement, according to Reuters. "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 issuer of Bitcoin Tracker One and Ether Tracker One did not immediately respond to requests for comments, while the Nasdaq declined to comment.
The SEC has become harder when it comes to cryptography in the last year. In March, the agency announced that there were "potentially illegal" systems that allow cryptocurrency trading, adding that different online trading platforms should be registered by the same SEC.
In addition, the commission has potentially issued dozens of requests for information and quotes from companies that have dipped or are dipping their toes into the initial reserve of coins (ICO).
And in June, SEC's main authority on bitcoin, cryptocurrency and initial coin offerings (ICO) established that some cryptocurrencies known as bitcoins and Ethereum are not securities. However, the coins offered during initial coin offerings are most likely entirely – or mostly – securities.
"Central to determine if a stock is sold is how it is sold and the reasonable expectations of buyers," William Hinman, head of the corporate finance division for the SEC, said at the time.
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