Grayscale estimated timing of lawsuit with SEC
- July 11, 2022
- 0
lawsuit against SECStarted by Grayscale Investments, it may take one to two years. This estimate was given by the head of the legal department of the Craig Salm
lawsuit against SECStarted by Grayscale Investments, it may take one to two years. This estimate was given by the head of the legal department of the Craig Salm company.
ICYMI: Grayscale’s Chief Legal Officer, Craig Salm, answered some common questions we’ve heard from investors about our lawsuit in which we appealed the SEC’s decision. $GBTC.https://t.co/1x4IwnBEb2
— Grayscale (@Grayscale) 11 July 2022
The senior executive said he firmly believed in Grayscale’s arguments and was confident the court would rule in his favour.
Grayscale Investments filed an application to convert a digital gold-backed trust into a spot Bitcoin ETF on October 19, 2021.
On December 17, the SEC delayed making a decision on the application and took that step again in February.
On June 30, Grayscale sued the regulator after its application was ultimately rejected.
The company had previously pointed out that the SEC’s willingness to approve futures-based bitcoin ETFs while rejecting orders based on the spot variant could violate administrative procedures law.
In the current statement, Salm stressed that the differences between initial cryptocurrency futures and spot ETFs have nothing to do with Commission decisions. Both product options are based on the same bitcoin spot markets.
The rejection of Grayscale’s application is considered “unfair discrimination” by the company. This is a violation not only of the Administrative Procedure Act, but also of the Securities Exchange Act of 1934.
Recall that Wall Street Journal editors accused Commission chairman Gary Gensler of a “confusing” approach to spot bitcoin ETF adoption.
Previously, Bloomberg analysts had predicted that the SEC would approve such instruments by mid-2023. According to Eric Balciunas’ calculations, 95% of those who commented on Grayscale’s implementation supported the launch of the tool.
Spot bitcoin ETFs have been approved by regulators in Canada, Brazil, Australia, and the Netherlands.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
