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SEC Halts Trading for Bitcoin Crypto Company
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The rise in popularity of bitcoin has been well-documented in 2017. Investors are treating this cryptocurrency less like a currency and more like an asset, and it’s become a staple among many investors’ portfolios. While its meteoric rise has been impressive, many analysts consider investing in bitcoin to be straight up gambling because of the fickle nature of the cryptocurrency, among other things.
However bitcoin has made its way into the markets and bitcoin futures were recently launched by the Chicago Board of Options Exchange (CBOE) on December 10. These contracts will trade under the ticker symbol XBT, and the CBOE is waiving all transaction fees for XBT futures for the entire month of December.
While investors and analysts may have mixed reactions to bitcoin becoming more mainstream, it does create some complications for the governing bodies. The U.S. Securities and Exchange Commission (SEC) has just announced that it will be temporarily suspending trading securities of The Crypto Company (CRCW) because of concerns regarding the accuracy and adequacy of information in the marketplace.
The Crypto Company deals primarily in bitcoin and other cryptocurrencies. Its primary services include consulting and advice to companies regarding investment and trading in the digital asset market, and investing in a manner that diversifies exposure to the growing class of digital assets.
The Crypto Company only came public in September, when over-the-counter shares entered the market at around $3.45 per share. While the volume of shares traded in this company is miniscule, it did see rapid growth since it came public. In fact shares closed out this past week at $512.00, an increase of 14,841% since the company came public.
It makes sense that the SEC will be cracking down on a company like this based on these numbers alone.
Earlier this month, SEC Chair Jay Clayton even warned of the potential hazards of investing in cryptocurrencies and initial coin offerings.
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