- The D.C. Circuit Court of Appeals has closed the books on the Grayscale-SEC Bitcoin ETF case.
- The securities regulator has been ordered to review Grayscale’s application.
- The ball is now on the SEC’s court.
The United States Court of Appeals for the District of Columbia Circuit has issued a final, binding mandate confirming Grayscale’s victory over the U.S. Securities and Exchange Commission (SEC).
Grayscale Investments LLC secured a partial win against the SEC on August 29 when a federal court ordered the securities watchdog to vacate its decision to reject the firm’s Bitcoin ETF bid on the grounds of “market manipulation concerns.”
SEC to Review Grayscale’s Application
According to a court filing dated October 23, the D.C. Circuit Court of Appeals has put to rest the legal dispute between Grayscale and the U.S. securities regulators, with the formal closure solidifying the ruling issued on August 29.
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“In accordance with the judgment of August 29, 2023, and pursuant to Federal Rule of Appellate Procedure 41, this constitutes the formal mandate of this court,” the order read.
The much anticipated and procedural move comes after media outlets reported on October 14 that the securities regulator did not intend to appeal the court ruling that found it erred in rejecting Grayscale’s Bitcoin ETF bid.
Following the developments, Grayscale has a renewed opportunity to transform its flagship Bitcoin Trust (GBTC) into a listed Bitcoin exchange-traded fund (ETF).
Grayscale Marches On
The October 23 court mandate now returns the ball to the SEC’s court, where the commission can approve Grayscale’s application or deny it on new grounds unrelated to its prior justification.
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Although the commission has been tight-lipped on the case, SEC commissioner Hester Peirce stated on Monday while speaking with Squawk Box that she was “mystified” why the regulator hadn’t approved a spot Bitcoin ETF by now.
On Grayscale’s part, the firm submitted a registration statement on October 19 to the SEC to list its GBTC shares on the New York Stock Exchange Arca.
Read why the SEC is hesitant to approve a spot Bitcoin ETF:
SEC Unlikely to Approve Spot Bitcoin ETF: Ex-SEC Chief
Stay updated on why Circle joined the Binance vs. SEC lawsuit:
Circle Steps into Binance v. SEC Ring to Defend Stablecoins
