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US SEC Halts Trading in Two Cryptocurrency Products

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Apparently, the US SEC doesn’t take weekends off.

The agency just suspended trading on two investment products that track cryptocurrencies.  Apparently, there’s confusion over whether the products are exchange trading funds (ETFs).

Bitcoin Tracker One and Ether Tracker One are halted until at least September 20, 2018

Both products have a promise to track the price of the cryptocurrencies, less fees.

And they are both listed on a NASDAQ exchange in Stockholm, but trade “over the counter” in transactions that occur off exchanges within the United States.

“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.’ 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 US SEC release reads.

There is hope for a Bitcoin ETF

All thanks to President Trump’s latest appointment of Republican Elad Roisman to the U.S. SEC.  In fact, he may be the missing piece that could tilt the balance in favor of approval.

“The SEC must examine and re-examine its rules, regulations, and guidelines to ensure that they are still working as intended to accomplish the SEC’s mission. This is most recently manifested in areas such as data protection and cybersecurity as well as the emergence of new investments and technologies such as initial coin offerings and blockchain.”

Now, the majority in favor of cryptocurrencies and the ETF jump to 3-1.

For example, Chairman Jay Clayton is likely to approve.

Commissioner Hester Peirce is likely to approve as well. Peirce is a well-known advocate of the ETFs, once saying she sees “no reason” why it should not happen.

Newly appointed Elad Roisman is likely to approve as well on a vote.



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