Bitcoin

SEC Deals Another Blow, Temporarily Suspends Trading at Bitcoin Generation

Christina Comben | Apr 29, 2019 | 18:30

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The US Securities and Exchange Commission (SEC) took another step backward from Bitcoin this morning by suspending all trading in securities of Bitcoin Generation (BTGN), the first publically traded cryptocurrency exchange. 

The suspension will take place from 9:30 AM EDT to 11:59 PM May 10. The SEC announced that this will be a temporary suspension of trading in the securities of Bitcoin Generation, a publically traded cryptocurrency exchange from Bartlesville, Oklahoma.

Purportedly behind the suspension are key concerns about the accuracy and validity of information BTGN has put in the marketplace. Specifically, the regulator points to public statements over the viability of a bond BTGN allegedly acquired from a UK-based entity.

Moreover, the amount of BTGN’s outstanding common stock and promotional activity have been called into question. The Securities and Exchange Commission is also concerned over the impact that its promotional activity has on the market. There are even doubts over the lack of public information regarding BTGN’s financial state. 

Trade and Face Consequences, Says SEC

The SEC has made it clear that any shareholder, prospective purchaser, or broker-dealer should take the above-mentioned concerns very seriously. They should be extremely cautious when reviewing the information available, as well as any subsequent information issued by the company.

Moreover, all brokers and dealers should understand that no quotation should be entered into even after the suspension is lifted unless it strictly complies with the provisions of Rule 15c2-11. Brokers and dealers who enter quotations that violate the rule in any way will face “prompt enforcement action.” 

More Anti-Bitcoin Attitude from Regulators

While the fate of Bitcoin ETFs still hangs in the balance and many cryptocurrency companies remain uncertain about their futures, the SEC marks yet another hostile action against Bitcoin.

In October of last year, the U.S. regulator also suspended securities trading at the American Retail Group, Inc. (ARGB) over false cryptocurrency-related claims. 

What do you think of the SEC’s suspension of Bitcoin Generation? Let us know your thoughts in the comments below! 

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