SEC suspends trading on two cryptocurrency products in US, due to confusion

Bitcoin Tracker One and Ether Tracker One appear to have (temporarily) fallen foul of American regulators…

The American Securities and Exchange Commission (SEC) has intervened in the world of cryptocurrency again, with an announcement that it’s suspending trading in a pair of investment products.

The two products in question – Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) – have been suspended until at least September 20th. It announced this is a formal statement posted on its website. Both products are currently listed on the Nasdaq in Stockholm, and the pair work on the basis of tracking the price of cryptocurrencies, minus fees. They boast “simple access to Bitcoin & Ether via your existing broker or bank”.

Effectively immediately, the statement declared that “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 confusion presumably relating to whether CXBTF and CETHF are exchange-traded funds (ETFs). Given that the SEC has been delaying decisions on Bitcoin-backed ETFs, or rejecting applications, it’s not too big a stretch to suggest its latest move is related.

No public word thus far has been forthcoming from the team behind Bitcoin Tracker One or Ether Tracker One, with the suspension coming into force at 5.30pm EDT yesterday, and the earliest it’s going to lift looking like 11.59pm on September 20th. Unless the SEC finds reason to continue the suspension.

You can read the full posting from the SEC yourself right here.

Image: BigStock