Two exchange-traded Fund (ETF) were forced to remove from their own descriptions, references to the blockchain, according to Bloomberg. This forced the Commission on securities and exchange Commission (SEC).
So, initially in the name Amplify ETF and Reality Shares appeared the word “blockchain”. However, the SEC refused to approve the start up until the mention of the technology of the distributed registry is not ruled out.
Such a requirement in the Commission explained the Law on investment companies of 1940, under which the issuers may not use «deceptive or misleading» names. In addition, in 2011, the SEC also clarified that the funds may use the names of the names of the assets that constitute at least 80% of the capital of the relevant financial product.
“The names must match with the offers of funds”, — said the Commissioner of the SEC Hester pierce.
In the result, Amplify had to change the name of your investment product to “a qualitatively new ETF proliferation” Reality Shares is now offering “the Nasdaq ETF NexGen economy”.
We will remind, recently the SEC has postponed decisions on applications to launch a bitcoin ETF from VanEck, and Bitwise in may.