ETF: Grayscale expects 2 years of Bitcoin war

CounteroffensiveGrayscale refuse to pinch without a fight, to the SEC’s decision rejecting the company’s request, on the conversion of the Grayscale Bitcoin Trust (GBTC) into an ETF Bitcoin place.

Grayscale says no to the SEC

Grayscale’s Chief Legal Officer, Craig Salm, who outlined the details relating to the litigation between the company and the SEC, on the issue of transforming the Grayscale Bitcoin Trust into a spot Bitcoin ETF. He declares :

“(…) we can either appeal to Congress to change the law (which involves a host of uncertainties), or appeal to the courts, or do nothing”

Grayscale chose the second option. After the regulator rejected on June 29, this conversion request, which was made via a Form 19b-4 filing with the SEC, in October last year.

At the risk of damaging its relationship with the federal agency and setting a precedent that could harm the interests of the sector, the company filed a request for review in the United States Court of Appeals for the District of Columbia Circuit to challenge this dismissal.

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Spot ETF BTC and Bitcoin: a common base

“(…) we believe these are distinctions with no difference in the context of bitcoin ETF approval » : Grayscale object at the differentiation operated by the SECbetween ETFs that track Bitcoin futures and spot ETFs.

BTC futures ETFs have managed to curry favor with the regulator, who believes that exchanges where futures contracts are traded benefit from regulation and oversight to prevent “problems such as fraud “. and handling”.

The difference is subtle, and would not be, according to Grayscale. The company takes a simpler or simplistic view – it depends – of the problem, recalling that the price of Bitcoin futures and cryptocurrency, is based on “the same underlying bitcoin spot markets”.

In this case, the SEC would then treat “similar situations” in a way, without different justification, behavior that violates the provisions of theAdministrative Procedure Act (APP).

Judicial calendar and proceedings

“(…) it may take between twelve months and two yearsbut it can be shorter or longer “: although the company was able to address its request for review directly to a Court of Appeal, given the status of a federal agency of the SEC, Grayscale is however committed to legal proceedings which may not reach its end. term, only in 2024.

The request for review is only the preliminary stage of a trial which, without going into certain procedural details, includes many others, including “the briefings, the selection of judges, the oral arguments and the final decision “.

With crypto players who no longer hesitate to attack the SECthe agency should understand that it can no longer impose its law, without taking into account the position of the parties who are directly impacted by its decisions.

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