COURT CASE: Grayscale Vs. SEC

Grayscale Investment takes the SEC to court after rejecting the decision of the agency, which rejected the Bitcoin spot exchange-traded fund (ETF)

Regulaciones January 25
Kimberly Rodriguez Medina

Grayscale is not having an easy time issuing its own ETF and, despite having submitted all the relevant documentation, it seems that the SEC is not budging on its decision. The US Securities and Exchange Commission has repeatedly rejected all requests from Grayscale, who wanted to issue its Bitcoin Spot ETF.

The firm has been trying to launch this product since 2021 and now decides to sue the SEC. The Court of Appeals for the District of Columbia will be in charge of hearing the arguments of both parties next March, specifically on the 7th. The authorities in charge will be the ones who decide if the SEC has sufficient arguments to continue denying Grayscale's request, at 09:30 local time.

The company has not yet revealed its arguments, but it will do so on February 6, when it publishes the composition of its defense panel.

Two years later

Grayscale's battle to issue the first Bitcoin ETF began in 2021. That same year, the SEC delayed the resolution of the application, claiming that it required more time to study it and, after this, decided to delay this decision again in February. The firm even went so far as to set up a space on its website, where investors could make comments in favor of this initiative and in defense of the SEC's speech.

The project was so acclaimed by the community that, according to the CEO's calculations, more than 800,000 US accounts are waiting for the issuance of this ETF. Given the refusal of the SEC, the firm decided to initiate the legal dispute, specifically in June 2022. After almost a year of waiting for the issuance of this ETF, Grayscale was not going to give up so easily.

Michael Sonnenshein, the CEO of the firm, ensures that the US authorities do not have rights over investors, but rather the duty to ensure that the disclosure of risks is adequate by the issuing company. In the words of the executive director, the SEC should focus on making users aware of the associated dangers, instead of "telling them where to invest or not to invest."

The battle is served

Grayscale has spent years accumulating applications, documents, and most of all, making sure they have everything they need to issue this bond. Now, it is in the hands of justice to decide if the rejection of the US financial authorities is justified or not. Interestingly enough, for once, the judge is being judged, since the SEC is supposed to have enough criteria to make such a decision.

The lack of cryptographic regulation in the US landscape means that these types of products sometimes remain in the air at the regulatory level, which makes this type of process difficult. However, it seems that Grayscale is not afraid and, above all, has the support of its entire community, which is also looking forward to the issuance of this ETF.


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