Spot Bitcoin ETF Denial Might Lead to Lawsuits
If the SEC denies spot Bitcoin ETF applications, it may face lawsuits from various companies like BlackRock and Grayscale Investments. The D.C. Court of Appeals is likely to rule against the SEC, similar to the precedent set in the Grayscale case last year.
In the Grayscale case, the court ordered the SEC to review the application again after initially denying it. Surprisingly, the SEC did not appeal this decision, indicating that it may not want to repeat that outcome.
If the @SEC were to deny all spot $BTC ETFs, the applicants would immediately sue and the D.C. Court of Appeals would again rule that the SEC was “arbitrary & capricious.” The SEC gave every reason they had for denying Grayscale—and lost. I expect multiple approvals on Jan. 10.
— MetaLawMan (@MetaLawMan) January 3, 2024
SEC’s Moves Are Promising
Although there hasn’t been an official statement from the SEC, its actions suggest progress regarding spot Bitcoin ETF applications. The SEC has reportedly been meeting with international exchanges like NYSE and Nasdaq Composite to discuss these products.
Until a decision is announced, crypto enthusiasts remain hopeful that spot Bitcoin ETFs will eventually be launched.
Hot Take: Spot Bitcoin ETF Denial Sparks Legal Battles
The potential denial of spot Bitcoin ETF applications by the SEC could lead to a wave of lawsuits from companies seeking approval. This scenario is reminiscent of the Grayscale case, where the SEC was ordered by the court to review its decision. However, the SEC chose not to appeal, indicating a potential shift in its stance.
While the SEC’s actions and meetings with international exchanges are promising, the final decision on spot Bitcoin ETFs is eagerly awaited by the crypto community. The outcome will have significant implications for the future of cryptocurrency regulation in the United States.
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