XBT Instruments Suspended By SEC
SEC cited lack of up to date information, something that led to confusion in the entire market.
SEC Suspends XBT Products
Two XBT Provider products will no longer be viable on the US Securities Exchange. This is after the SEC announced that Bitcoin Tracker One and Ether Tracker One have been suspended with immediate effect.
SEC notes that the two have exhibited some anomalies that resulted in the suspension. SEC cited the inability to provide current information as one of the reasons behind the suspension. The two providers were also accused of having inaccurate information, something that resulted into confusion.
A suspension order released on Sunday stated that SEC recognized the two instruments as registered on Nasdaq and OMX exchanges based in Stockholm. The SEC concluded that the move was meant to protect clients and interests of investors in general.
On the positive side, the platform will have a chance to redeem itself on September 20th when the suspension will be lifted. The suspension is according to the Securities Exchange Act.
SEC further highlighted some of the gaps noted in the operations of the two platforms. SEC pointed out that other resources with tools such as ETN. The body said that compared to ETFs the notes were unsecured liability needs of financial service providers on an exchange platform.
In a detailed description, SEC said that ETN payment conditions are related to the performance of a reference figure. ETNs and ETFs can be exchanged on a trading platform but we have notable differences.
Additionally, SEC highlighted that the provider distinguishes them in its issuance assets as ‘non-equity joined permit.