Yesterday the U.S Security and Exchange Commission had temporarily shut off the trading in two of the security tokens. These are the bitcoin tracker one(CXBTF) and ethereum tracker one(CETHF).
The halt in the service is due to the confusion of being acting as security tokens of these tokens. These tokens since following the security disguised showed be considered as part of the federal exchange law.
What is Bitcoin Tracker One?
Bitcoin is a form of digital currency, created and held electronically. … In 2015, Bitcoin Tracker One became the first bitcoin-based security available on a regulated exchange when it listed on NASDAQ/OMX in Stockholm.
The regulator mentioned, The suspension started from Sunday and will be last for till the September 20.
The Securities and Exchange Commission announced the temporary suspension of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) commencing at 5:30 pm EDT Sept. 9, 2018 and terminating at 11:59 pm EDT Sept. 20, 2018. https://t.co/5z1vEYFBFB
— SEC_News (@SEC_News) September 9, 2018
In the meantime, Agency cites investor and the confusion will be halted trading of the assets.
Those brokers who allow the trading for the Bitcoin and Etherum Tracker one will be subject to enforcement action by SEC.
The fact that they took down these is that they are educating themselves rather than the public. Considering them as the security rather than the utility token could make them ready for the regulation. But not all tokens are the security.
Though this could be turn at the end and a consolidate regulation is hopefully to come by soon.
— CNBC (@CNBC) May 18, 2018
(image source: Pexel)