Bitcoin Surges Over 10% After Court Decision
The price of Bitcoin has surged by more than 10% following a federal appeals court decision that requires the U.S. Securities and Exchange Commission (SEC) to reconsider its rejection of Grayscale’s attempt to convert its bitcoin trust into an exchange-traded fund (ETF).
Bitcoin Approaches $35,000 Level
Bitcoin came close to reaching the $35,000 mark after experiencing a climb of over 12% within a few hours, according to data from BTC/USDT Coinbase on TradingView.
U.S. Appeals Court Upholds Decision for SEC Review
The significant gains in Bitcoin’s price were triggered by news that a U.S. federal appeals court upheld a previous court decision requiring the SEC to reconsider its rejection of Grayscale Investments’ application to convert its Grayscale Bitcoin Trust into a spot bitcoin ETF.
SEC’s Approval Decision is Crucial
The focus now shifts to the SEC’s decision on whether to approve or deny the proposed conversion. Tim Enneking, managing director of Digital Capital Management, believes that while approval seems inevitable, the SEC may delay issuing an affirmative approval. David Schwartz, Director of Projects and Strategic Partnerships for the Litecoin Foundation, suggests that if Grayscale follows the template used by other successful applications like Blackrock, their chances of approval could be favorable.
Challenges Faced by Federal Lawmakers
The involvement of the U.S. court system in the crypto space highlights the difficulties faced by federal lawmakers in regulating the industry. Enneking emphasizes that outdated legislation is being applied to innovative financial technology and states that the judicial branch is stepping in as the “sole adult in the room” due to the paralysis of the legislative branch.
Hot Take: Bitcoin Surges on Court Decision, SEC’s Approval Awaited
The price of Bitcoin soared by over 10% after a federal appeals court ruled that the SEC must reconsider its rejection of Grayscale’s bitcoin trust conversion to an ETF. Bitcoin approached the $35,000 level, experiencing a significant climb in just a few hours. The court decision has put the spotlight on the SEC’s upcoming approval decision. While experts believe approval is likely, there may be delays in issuing a definitive decision. The involvement of the U.S. court system reflects the challenges faced by federal lawmakers in regulating the crypto industry. The judicial branch is taking charge as the responsible authority amidst legislative paralysis.
By
By
By
By
By