The US Securities and Exchanges Commission has placed a ban on two major trading platforms namely; XBT Provider’s Bitcoin and Ether Tracker One securities, the occurrence which took place on Sunday, September 9, 2018, has made the bitcoin’s price volatile as the market tumbles.
The grounds cited by the regulator was “confusion” amongst investors, the US SEC has since issued a notice that the memorandum to this effect that two exchange-traded notes (ETNs) – Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) would be unable to trade until September 20 which is less than a month. The SEC notice stated that; “The Commission temporarily suspended trading in the securities CXBTF and CETHF because of confusion amongst market participants regarding these instruments,” and further stated that;
“The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the preceding information along with all other currently available information and any information subsequently issued by the company.”
SEC and the Banned Platforms
The XBT Provider has been operating Bitcoin Tracker One since May 2015 when it became the first bitcoin-based ETN available on a regulated exchange and debuted on Sweden’s NASDAQ. While Ether Tracker one, on the other hand, joined the market in October 2017, though reached the same milestone as the XBT has long since released Ether Tracker Euro and Bitcoin options on its platform.
Notably, the US Securities and Exchange Currencies had previously issued a warning to the brokers stating that the regulator would not accept anything short of full compliance with the recently placed temporary bans on the two exchanges as it stated that;
“If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.”
The Ban and its Effects
The ban has definitely left some impacts however on the cryptocurrency market as this move came amidst a testing time for virtual currency investors versus the United States regulatory establishment owing that the regulator has rejected a slew application for a Bitcoin exchange-traded fund (ETF).
The Securities and Exchange Commission’s latest rejection towards the end of August did not really affect the crypto market though analysts have opined that the presence of the cryptocurrency ETF, whose fate could rests on the decisions of four SEC commissioners, will probably lead to some sort of guarantee in the future and might be a ‘bitter sweet’ experience for Bitcoin market.
The cryptocurrency volatility is evident in the irregularity of the price of bitcoin and other digital currencies, for instance; Bitcoin is currently standing at about $6,300, meaning that it went up 1.59 percent as at press time while Ethereum trades just a little below $200 which is the first time of this occurrence since November 2017.