Author Archives: Jeanna Smialek

Two US financial regulators are used for clients who have been involved with cryptocurrency, in the first attempt to regulate a growing industry. In the first case, the SEC took action against crypto hedge funds, alleging that California’s Crypto Asset Management LP management funds misrepresented itself as “the country’s first crypto fund of regulated assets” and operated without registration. The agency also took action against the “super store” initial coin (ICO) offering, namely Token Lot, because it failed as a broker when connecting with digital. The Financial Industry Regulatory Authority, the self-regulating authority that regulates the industry, meanwhile, issued its first disciplinary action for unregistered money called Hemp Coin. Regulators continue to debate whether cryptocurrency must be securities, which means they will be issued the same as SEC shares. Earlier this week, a federal judge ruled that US securities laws had to make an initial offer, echoing the description of…

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The bitcoin world was dealt a big blow when regulators rejected nine exchange-traded funds tied to bitcoin futures on Wednesday. These include two products from ProShares, two from GraniteShares, and five other proposals from Direxion.Markets Insider It means the world is still waiting for its first fully regulated bitcoin ETF product. The funds would have tracked bitcoin futures trading on regulated US exchanges, not bitcoin itself.A bitcoin ETF would likely make it easier for mom-and-pop to tap into the market, which known for its volatility and market manipulation. Still, it’s not clear if the SEC’s concerns about such a derivative product will be mollified in 2018.John Hyland, a early leader of the exchange-traded fund industry, put the odds of a bitcoin ETF going live this year at 20%. Hyland joined California asset manager Bitwise Asset Management earlier this year to help get their ETF off the ground. Unlike other proposals…

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Even Goldman Sachs, a giant Wall Street that trades the most esoteric assets of the market, cannot find a way to trade bitcoin. The bank has ditched plans to open a table for cryptocurrency trading in the future, according to people familiar with the matter, because the regulatory framework for crypto is still unclear. As part of the decision, Goldman has moved plans to open a table for cryptocurrency trading to further list priorities for how it can participate in the cryptocurrency market, people say. This can revive this plan later, they added. But for now, Goldman focuses on other projects such as custody products for crypto, which means that banks store cryptocurrency and, potentially, track price changes on behalf of large fund clients. Many market observers say that for large institutional companies to get convenient bitcoin trading, there needs to be a good custody offering to maintain ownership. After…

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Citigroup may have cracked the cryptocurrency code. The New York-based bank has come up with the most direct way to invest in cryptocurrency without actually having it, according to people who know the plan. This structure will place the cryptocurrency in the existing regulatory regime and give large Wall Street investors such as asset managers and hedge funds how to invest less risk in new asset classes. Citi has developed an instrument called acceptance of digital assets. This works like the receipt of an American deposit, which has been around for decades to give US investors a way to have foreign stocks that do not trade on US exchanges. Foreign stock is held by the bank, which then issues the receipt of the deposit. In this case, the cryptocurrency will be held by a guard, with what is called DAR issued by Citigroup, people say. The bank will remind Depository…

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