Citigroup to Develop New Way fo Crypto Trading

The reaction of the SEC to the possible release of a new instrument is yet to be foreseen
10 September 2018   270

One of the largest banking conglomerates of the USA, Citigroup intends to issue receipts for digital assets that will allow customers to trade crypto-currencies without owning them directly. The new tool complies with the existing legal norms, the sources of Business Insider note.

A new kind of receipts should work on the principle of American depositary receipts, allowing investors to trade in securities baskets that are not represented on American markets. In this case, the cryptocurrencies themselves will be kept by a separate custodian.

The reaction of the Securities and Exchange Commission (SEC) to the possible release of a new instrument is yet to be foreseen, since exchange products based on cryptocurrencies do not cause the agency to have warm feelings, as evidenced by repeated refusals to open bitcoin-ETF and the recent decision to suspend trades tied to the dollar with exchange notes from the XBT Provider.

Earlier, IT giant IBM, conglomerates of Barclays and Citi announced the creation of a banking-oriented store for blockchainapplications LedgerConnect.

SEC to Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   158

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.