Grayscale Investments, the world’s largest digital currency asset manager, has filed a lawsuit with the U.S. Securities and Exchange Commission (SEC) challenging the securities regulator’s rejection of its application to convert the Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund (ETF). ).
Grayscale Takes SEC to Court Over Spot Bitcoin ETF Application
Grayscale Investments filed an “application for review” Wednesday challenging the U.S. Securities and Exchange Commission’s (SEC) decision to reject the firm’s conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF).
“We have filed a lawsuit against the SEC,” Grayscale CEO Michael Sonnenshein tweeted shortly after the SEC rejected his company’s application.
Sonnenshein commented: “We are deeply disappointed and strongly disapprove of the SEC’s continued decision to deny spot Bitcoin ETFs access to the U.S. market.” He added:
We believe U.S. investors overwhelmingly expressed their desire to see GBTC convert to a spot Bitcoin ETF, which would free up billions of dollars in investor capital while bringing the world’s largest Bitcoin fund further into U.S. regulation.
Grayscale’s senior legal strategist and former U.S. Attorney General Donald B. Verrilli Jr. details:
The SEC’s failure to treat similar investment vehicles consistently, and thus its behavior is arbitrary and capricious, in violation of the Administrative Procedure Act of 1934 and the Securities Exchange Act.
The lawyer continued: “There is a compelling, common-sense argument here, and we look forward to addressing this issue effectively and expeditiously.”
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