Court Sides With Grayscale Against SEC
The United States Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale Investments against the U.S. Securities and Exchange Commission on Tuesday regarding the company’s proposed bitcoin exchange-traded fund (ETF) conversion.
- The court ruling is a monumental step forward for bitcoin exposure through the added protections of the ETF wrapper.
- Grayscale has been trying to convert its flagship bitcoin trust (GBTC) to a spot bitcoin ETF, but the SEC has denied the application.
- The SEC has approved bitcoin futures ETFs but has not yet approved a spot bitcoin ETF.
- Grayscale filed a lawsuit challenging the SEC’s denial order.
- In the court order, Circuit Judge Neomi Rao stated that the denial of Grayscale’s proposal was arbitrary and capricious.
This court ruling is a significant win for Grayscale Investments and the crypto community. It demonstrates that the SEC’s denial of Grayscale’s proposed bitcoin ETF was unjustified and lacked proper explanation. The ruling highlights the need for the SEC to provide consistent treatment of similar products and encourages further progress towards the approval of a spot bitcoin ETF. This decision sets a precedent for future cases involving the SEC’s regulation of digital assets.
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