SEC Halts Cryptocurrency Fund Registration

The SEC Division of Investment Management (the "Division") advised funds that are investing significantly in cryptocurrency not to seek to register their securities or otherwise to sell securities in a public offering. In a staff letter sent to the Investment Company Institute and SIFMA, Division Director Dalia Blass, stated that sponsors should withdraw any registration statements that have been filed for these products, and explained that the Division does not believe that they should use  Securities Act Rule 485(a) to file "post-effective amendments to previously effective registration statements for registration of a new series to go effective automatically." If a sponsor elects to do so, Director Blass said that the Division would consider recommending a stop order or taking other action.