SEC halts trading on bitcoin and Ether securities
The SEC has suspended trading for the cryptocurrency securities Bitcoin Tracker One and Ether Tracker One. In a statement, the commission said that trading websites characterized these securities as "exchange-traded funds" and "exchange-traded notes," but they are actually nonequity linked certifications.
Previously the SEC rejected an ETF proposal by Cameron and Tyler Winklevoss.
"It appears … that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One and Ether Tracker One, issued by XBT Provider AB, a Swedish company headquartered in Stockholm, resulting in confusion amongst market participants regarding these financial instruments," The SEC said in a statement. "The commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above quoted company."
Trading is suspended until Sept. 20, according to the SEC statement, presumably to allow the companies to correct the information on their websites.