Applicants Could Sue SEC if Bitcoin ETF is Rejected
A recent development has raised doubts about the approval of pending Spot Bitcoin ETF applications by the Securities and Exchange Commission (SEC). According to lawyer James “MetaLawMan” Murphy, if all applications are denied, the applicants would immediately sue the SEC. Murphy believes that the Court of Appeals would likely rule against the SEC, as it did in the Grayscale case, deeming the decision “arbitrary and capricious.” He argues that the SEC has no valid reason to deny these applications. Despite Matrixport’s report suggesting that the SEC may reject all proposals this month, Bloomberg analysts still maintain a 90% chance of approval by January 10.
No Cause For Alarm?
While Matrixport’s report caused confusion, there is currently no evidence supporting the claim that the SEC will reject all Spot Bitcoin ETF applications. Bloomberg analysts James Seyffart and Eric Balchunas continue to assert their belief in a high likelihood of approval by January 10. Seyffart suggests that the SEC may be signaling issuers to expect approvals soon. He anticipates trading to begin shortly after approval orders are issued, measuring in days rather than weeks. Balchunas also supports this view, citing multiple reports from individuals with inside information suggesting imminent approval.
Hot Take: The Uncertain Fate of Bitcoin ETFs
The pending approval of Spot Bitcoin ETFs by the SEC has become a topic of debate and speculation. While some legal experts argue that there is no justifiable reason for the SEC to reject these applications, others believe that rejection is possible. The outcome will have significant implications for the crypto industry and investors. If rejected, applicants may take legal action against the SEC, potentially leading to a court battle. On the other hand, if approved, it could open the doors for more widespread adoption of cryptocurrencies. The final decision rests with the SEC, and the crypto community eagerly awaits their ruling.
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