The United States Securities and Exchange Commission (SEC) is slowly taking action towards Exchange-Traded Funds (ETFs) that misleadingly use blockchain in their names.
According to reports from Bloomberg, issuers are not able to use ‘materially deceptive or misleading’ names under the Investment Company Act of 1940. As a result of this, more than a third of thematic ETFs had to change their names last year during the SECs approval process. For example, one fund that originally included blockchain in its name is now called a ‘transformational data sharing’ ETF.
The Chief executive officer of Exchange Traded Concepts, J. Garret Stevens said,
“We get questions more than we used to where we have to be able to defend our name. Now, almost all names, they’ll come back and say ‘Can you justify [and] give us your explanation on why this name is OK?”
Corporate Traveller is a UK based provider of business travel management services to small business companies, and they have…
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