Four affiliations in the action against the Securities Exchange Commission (SEC); The Blockchain Society, The Chamber of Digital Commerce, the Chamber of Progress, and Coin Center have filed an amicus curiae in support of Grayscale. The SEC’s decision to deny Grayscale’s request to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF was criticized by Grayscale as “discriminatory.”
Grayscale initial sue charges on SEC
The manager of the largest bitcoin fund in the world, Grayscale, a while ago, filed a lawsuit against the U.S. Securities and Exchange Commission after the agency rejected its request to transform the investment vehicle into an exchange-traded fund.
The manager of the largest bitcoin fund in the world, Grayscale, filed a lawsuit against the U.S. Securities and Exchange Commission after the agency rejected its request to transform the investment vehicle into an exchange-traded fund.
Grayscale promptly appealed the SEC’s judgment to the U.S. Court of Appeals for the District of Columbia Circuit in a petition. Donald B. Verrilli Jr., a former solicitor general of the United States, is Grayscale’s chief legal strategist, leading a group of lawyers from Davis Polk & Wardwell in this case.
Verrilli claimed that “the SEC is acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934 by failing to apply uniform treatment to identical investment vehicles.”
Associations back Grayscale in its legal battle with the SEC.
The Blockchain Association and three other trade groups that support the spot Bitcoin ETF submitted an amicus brief in favor of Grayscale Investments’ action against the SEC, according to a tweet from the company on October 19.
“Investors should be able to decide how they want to access their Bitcoin. We appreciate the Blockchain Association’s assistance as we endeavor to make this vision a reality.”
The Blockchain Society, The Chamber of Digital Commerce, The Chamber of Progress, and the Coin Center reportedly ask the SEC to rethink its decision and authorize the spot Bitcoin ETF for usage by the general public in their amicus brief.
The SEC rejects all spot Bitcoin ETF applications while approving several Bitcoin futures ETFs. The SEC’s conduct broke the Administrative Procedures Act, which forbids the regulator from discriminating against securities issuers.
Through various choices like cryptocurrency exchanges, investors may directly trade cryptocurrencies like Bitcoin. Associations, however, firmly think that the ETP contributes to investor protection and enables indirect exposure to Bitcoin for investors. Furthermore, both spot Bitcoin ETPs and Bitcoin futures ETPs get their value from the same Bitcoin market.
Investors have expressed an interest in purchasing goods that provide them access to bitcoin. As a result, risks are acknowledged in the goods, and investors may choose whether or not to take them.
Michael Sonnenshein, CEO of Grayscale, denounced the SEC.
Before transforming its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, Grayscale filed a legal brief against the SEC. The SEC rejected the idea due to fraud and stock manipulation threats.
The SEC’s decision to treat the Bitcoin futures ETF and spot ETF differently infringes on the APA rule, according to Grayscale Investments CEO Michael Sonnenshein. Additionally, he calls on Congress to address the dispute between the SEC and CFTC about authority over cryptocurrency.