Grayscale challenges Bitcoin spot ETF denial in court

Depricated as of Oct 2022

Some CRYPKYP functionalities are depricated as of October 2022 and will no longer be populated until further development and future version.
Although all here is visible and interactable you can not Contribute to those articles.
Try looking at other information on the Platform and Contributing there!

Have a great day,

Grayscale challenges Bitcoin spot ETF denial in court

Grayscale challenges Bitcoin spot ETF denial in court
Source: CoinTelegraph
1656584906 30 Jun / 10:28

Grayscale Investments has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) after its request to convert its Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin (BTC) exchange-traded fund was refused (ETF).

It said on Wednesday that its chief legal strategist, former U.S. attorney general Donald B. Verrilli Jr., has filed a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit.

Verrelli stated that the most recent decision demonstrates that the SEC is acting "arbitrarily and capriciously" by "failing to apply consistent treatment to similar investment vehicles" and that he will pursue legal action based on the SEC's alleged violation of the Administrative Procedure Act (APA) and the Securities Exchange Act (SEA).

Grayscale Investments, which manages $12.92 billion in assets in its GBTC, has been awaiting a decision from the SEC since applying on October 19, 2021, to convert its flagship Bitcoin trust into a spot-based ETF.

The application was denied “to protect investors and the public interest,” according to a filing from the securities regulator on Wednesday since the plan failed to explain how it is “designed to prevent fraudulent and manipulative acts and practices.”

The judgment occurred a whole week before the July 6 deadline and on the same day that Bitwise’s Bitcoin exchange-traded product was also rejected (ETP).

In a statement released on Wednesday, Michael Sonnenshein, CEO of Grayscale, expressed “deep disappointment” and “vehement disagreement” with the SEC’s decision to refuse their application.

“We will continue to leverage the full resources of the firm to advocate for our investors and the equitable regulatory treatment of Bitcoin investment vehicles,” he stated.

James Seyffart, an ETF analyst at Bloomberg Intelligence, told his 19,400 Twitter followers that while the case has been filed, a court decision on the subject is not expected until Q3 2023 to Q1 2024, implying that the GBTC may not go forward anytime soon.

Grayscale’s legal team has been preparing for a potential dispute with the SEC. Former U.S. solicitor general Donald B. Verrilli Jr. joined the firm’s legal team earlier this month.

Grayscale’s legal team also consists of attorneys from Davis Polk & Wardwell LLP and its in-house counsel, including chief legal officer Craig Salm.

Michael Sonnenshein, the chief executive officer of Grayscale, told Bloomberg in March that his company would consider filing a lawsuit under the Administrative Procedure Act (APA) if the financial regulator refused the application for its Bitcoin Spot ETF.

Last News and Media
CRYPKYP contain links to third-party websites, resources, and advertisers. CRYPKYP does not control, sponsor, recommend or otherwise accept responsibility for any third-party content because we are not responsible for the availability of these outside resources or their contents or privacy practices. It will help if you direct any concerns regarding any third-party content to such a third party. We don't accept responsibility for the content of external websites linked to through the Site or the Services. Third-party content is accessed at the user's own risk. CRYPKYP distributes content from third-party publishers as indicated on the site from time to time mainly in Airdrops, News / Media, Whale Alerts, and Rumors. In these circumstances, CRYPKYP only provides limited stylistic input to the content. CRYPKYP does not verify and takes no responsibility for the accuracy of the content provided by any such third-party publishers.