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- The SEC rejected Grayscale’s Proposal to launch a Bitcoin ETF.
- The Security and Exchange Commission justified its decision by claiming that the proposal given to them regarding the ETF list could not fulfill all the requirements necessary to prevent all the cybercrimes, fraud, and manipulative practices to protect both public and investors’ interests.
- The rejection by SEC has ended Grayscale’s eight-month campaign, which eventually led to some possibilities of future legal actions.
The Business Rejection
The World’s most immense crypto trust, Grayscale, bided the SEC to become an exchange-traded fund.
In answer to this, the SEC has rejected the proposal mentioned above.
The Security and Exchange Commission justified its decision by claiming that the proposal given to them regarding the ETF list could not fulfill all the requirements necessary to prevent all the cybercrimes, fraud, and manipulative practices to protect both public and investors’ interests.
The SEC clarified that their decision was purely based on the designed standards of Grayscale and is not an indication of the SEC’s perspective towards bitcoin, blockchain, and their future.
But no, the case isn’t closed yet. The rejection by SEC has ended Grayscale’s eight-month campaign, which eventually led to some possibilities of future legal actions.
Well, The Game Is Still On
“‘All options are on the table’ should the SEC not allow the conversion, and the firm hired former US Solicitor General Donald Verrilli in June to be ‘prepared for all possible outcomes.'”
These are the words of Grayscale CEO Micheal Sonnenshein.
The lawsuit is about Grayscale accusing the SEC of breaching the Administrative Procedure Act and Securities Exchange Act.
There were many points in the statements regarding the lawsuit; one of the most important was the reference to the fact that SEC approved ETFs based on bitcoin futures:
“If regulators are comfortable with ETFs that hold derivatives of a given asset, they should logically be comfortable with ETFs that hold that same asset.”
The estimated value for the investors if ETF is unlocked is 8 billion USD, according to the data analysts of Grayscale.
Still, the focus of the SEC right now is the lack of surveillance-sharing agreements regarding the underlying assets.
The bitcoin price has been down 70% from its year high, which was $69,000 in November.
To the higher inflation, the investors are dumping the riskier assets and cryptocurrencies, therefore plunging the trust and hopes of the crypto optimists and entrepreneurs.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
