Grayscale Launches Legal Battle Against SEC for Rejecting Spot Bitcoin ETF

Grayscale has launched a lawsuit against the U.S. Securities and Exchange Commission (SEC) for failing to approve its proposal for a Bitcoin Spot ETF.

Grayscale, one of the world’s biggest digital asset managers, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) for its refusal to approve its bitcoin Spot ETF proposal.

Grayscale Spot Bitcoin ETF Rejected

On Wednesday, June 29th, the U.S. securities regulator rejected the Grayscale proposal to launch a bitcoin Spot ETF. According to the SEC, Grayscale did not meet the required standards for the prevention of fraudulent and manipulative market practices.

The Commission listed wash trading, whale manipulation, exchange and network hacking, stablecoin manipulation, and dissemination of misleading information as potential sources of fraud and manipulation in the spot Bitcoin Market.

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The SEC wrote that the rejection was not based on an “assessment of whether Bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment.” 

Grayscale Responds with Lawsuit

Grayscale responded to the rejection by launching a lawsuit against the securities regulator. Grayscale CEO Michael Sonnenshein alleges that the SEC has violated the ‘Administrative Procedure‘ and ‘Securities Exchange‘ acts.

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The digital asset manager has filed a “petition for review” with the United States Court of Appeals for the District of Columbia. Grayscale is now challenging the SEC’s decision to reject the Grayscale Bitcoin Trust’s (GBTC) conversion into a spot ETF.

On the Flipside

  • Jacobi Asset Management announced on June 30th that it would be launching Europe’s first bitcoin exchange-traded-fund (ETF) on the Euronext exchange.

Why You Should Care

Grayscale has announced that it will continue to leverage all of its resources to advocate for its investors, and push for the launch of the first bitcoin Spot ETF in the U.S.

Grayscale is making better headway in Europe. Find out more below:

Grayscale enters the European ETF market with new finance fund

Read about the first Bitcoin short ETF:

ProShares Prepares to Launch First ETF Allowing U.S. Investors to Bet Against Bitcoin

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia