Grayscale, the manager of a massive Bitcoin fund, recently applied to turn that fund into an exchange-trade fund. Earlier this week, the US Securities and Exchange Commision denied that request. Now, Grayscale will set its sights on the SEC itself, as the company will be suing the government body over its denial of the bid.
The news of Grayscale suing the SEC came from the company itself, as we learned thanks to CNBC. An official SEC listing details the Grayscale bid, as well as the group’s decision to shoot it down. According to the SEC, a key factor behind the decision was Grayscale’s failure to properly answer questions pertaining to concerns around market manipulation.
Grayscale clearly doesn’t see things the same way, as evidenced by its decision to sue the SEC. The company made its filing to the U.S. Court of Appeals for District of Columbia Circuit. Grayscale senior legal strategist Donald B. Verrilli Jr., spoke to the SEC decision and the move to sue. He stated that the SEC is “Failing to apply consistent treatment to similar investment vehicles, and is therefore acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934.”
It will be interesting to see how the Court of Appeals rules on the case, and if it eventually leads to the SEC reversing its decision. If Grayscale is indeed able to turn its Bitcoin fund into an ETF, it believes that it will create billions of dollars for investors. It’s just the latest round of concerning news in the crypto world. Earlier this week, crypto hedge fund Three Arrows Capital defaulted on a massive $670 million loan. We’ll continue to find and share the most notable stories in the world of cryptocurrency.
Donovan Erskine posted a new article, Grayscale sues SEC over spot price Bitcoin ETF rejection
You can sue for anything, but find me a crypto coin that doesn't do ridiculous market manipulation, often entirely openly.
It's the right call.