Just as the cryptocurrency market is turning bullish, the US Securities and Exchange Commission (SEC) takes another step back from Bitcoin (BTC) by suspending all securities trading on the first publicly traded cryptocurrency exchange, Bitcoin Generation (BTGN).
The SEC announced that they will be temporarily suspending trading in the securities of Bitcoin Generation from April 29 to May 10.
Per the announcement, the temporary suspension is in the best interest of investors, as the SEC is concerned about the accuracy of information BTGN has put in the marketplace. More specifically, the regulator points to the validity of a bond that BTGN allegedly acquired from a UK-based entity.
Further adding to the fire, the activity of BTGN’s outstanding stock and promotional operations has been called into question. The SEC is even questioning BTGN’s financial state and lack of public information regarding this.
All in all, the suspension of the aforementioned cryptocurrency exchange is due to serious doubts that BTGN is being truthful with their provided information. The SEC urges investors to be extremely cautious when reviewing available information from the company until their investigation is completed.
The SEC’s primary goal is to protect investors and maintain orderly markets that are fair and efficient for all parties involved.
However, many people will argue that the SEC has hindered innovation by making it difficult for entrepreneurs to experiment with and utilize the technology. As previously reported by IIB, American economist John Berlau has criticized the SEC for potentially putting crypto out of reach for middle-class investors.
While the SEC may be harsh against the crypto industry, they are making the examination of cryptocurrencies and the industry a top priority in 2019 to better prevent fraud and theft, and to protect investors.
After all, the cryptocurrency bull market in 2017 had its fair share of bad actors, and a lot of uninformed investors lost money.
Do you think the SEC is doing a good job at regulating the cryptocurrency industry? Let us know what you think in the comment section below.
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