Grayscale filed a lawsuit in opposition to the US Securities and Change Fee (SEC), and the corporate’s CEO mentioned the transfer means a lot greater than Bitcoin.
Grayscale’s CEO Michael Sonnenshein has revealed that the corporate’s lawsuit in opposition to the SEC isn’t about Bitcoin.
Final yr, Grayscale revealed that it was going to file for a Bitcoin exchange-traded fund (ETF) with the SEC. Nevertheless, the SEC rejected the applying, because it has executed with quite a few different spot Bitcoin ETFs submitted by different funding companies.
Grayscale proceeded to file a lawsuit in opposition to the SEC in July this yr after the regulatory company rejected Grayscale’s software.
In an interview for Yahoo Finance’s All Markets Summit, Grayscale CEO Michael Sonnenshein identified that the lawsuit transcends its personal makes an attempt to launch a spot bitcoin ETF. he mentioned;
“We actually really feel that this lawsuit isn’t about bitcoin. That is about placing ahead easy frequent sense authorized arguments that actually be sure that traders are protected and that the SEC is performing inside their mandate.”
The SEC had rejected quite a few spot Bitcoin ETF functions over the previous few years, citing the cryptocurrency’s vulnerability to market manipulation.
Grayscale is now asking a federal appeals court docket in Washington DC, to evaluation the SEC’s resolution, including that the regulatory company is making use of stricter requirements to identify ETFs than to futures ETS
contending that the company had utilized stricter requirements to identify ETFs than to futures Emission Buying and selling System (ETS).
The Grayscale CEO added that;
“We’ve by no means seen them do that earlier than for some other product, some other commodity that we’ve ever seen. And it utilized it very, very stringently to identify bitcoin ETFs, like GBTC [Grayscale Bitcoin Trust], however very leniently to bitcoin futures ETFs. “So, the SEC is basically performing outdoors of its authority beneath the [Securities and] Change Act. And that’s actually one of many strongest arguments.”
Sonnenshein complained that the dearth of correct regulation in the US is forcing cryptocurrency firms to flee to different international locations. He concluded that;
“You will have payments passing throughout the ground of Congress, either side of the aisle supporting it. You will have firms transferring outdoors the US as a result of our regulatory panorama isn’t catching up quick sufficient with the innovation going down right here.”
Whereas there isn’t a Bitcoin ETF in the US, there are different crypto-related ETFs already out there to traders.
Final month, BlackRock launched a brand new blockchain ETF for European clients referred to as the iShares Blockchain Expertise UCITS ETF (BLKC).