Home / Uncategorized / The SEC halts trading of 3 companies after they said they were diving into crypto

The SEC halts trading of 3 companies after they said they were diving into crypto

Jay Clayton is sworn in to testify at a Senate Banking, Housing and Urban Affairs Committee listening to on his nomination of to be chairman of the Securities and Exchange Commission (SEC) on Capitol Hill in Washington, U.S. March 23, 2017.

REUTERS/Jonathan Ernst

  • SEC has halted trading in 3 companies that experience made cryptocurrency-related bulletins.
  • The 3 companies, which business in OTC markets, all introduced plans to buy crypto property.

Count this as some other signal that US regulators are paying nearer consideration to the nascent cryptocurrency international.

The Securities and Exchange Commission on Friday suspended the trading of 3 companies after they made bulletins that they would dive into crypto, in keeping with a memo dated February 15.

The suspension, which lasts till March 2, will permit the SEC to seem into claims made through Cherubim Interest, PDX Partners, and Victura Construction. The companies have all introduced plans to buy cryptocurrency-related property, in keeping with the regulator.

“The SEC’s trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things,” the memo said.

The company can even glance into Cherubim’s plans for an preliminary coin providing, a cryptocurrency twist at the preliminary public providing procedure. The 3 companies business in over the counter markets.

The SEC has made it transparent that it’s going to carefully read about companies that declare to doing industry in cryptocurrency. In August, it warned buyers concerning the chance of companies making crypto bulletins to have an effect on their percentage value.

Jay Clayton, the chairman of the regulator, said in January that the company “was looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed-ledger technology.”

About Joel Johnson

Joel S. Johnson writes for Business Finance Section in AmericaRichest.

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