Grayscale’s wins petition for review in bitcoin ETF case against SEC
The United States Court of Appeals granted Grayscale’s petition for review!
Chris.P
In a significant legal victory, Grayscale Investments secured a favorable ruling from a three-judge panel at the DC Circuit Court of Appeals in its ongoing battle against the Securities and Exchange Commission (SEC).
This development follows Grayscale's lawsuit against the SEC in June 2022, which was initiated when the SEC blocked the crypto-focused asset manager's attempt to convert its Bitcoin Trust (GBTC) into an Exchange-Traded Fund (ETF).
Grayscale's primary argument revolved around what it deemed an inconsistency in the SEC's approach. The SEC had approved ETFs based on bitcoin futures contracts but had rejected proposals for products directly holding bitcoin, a move that Grayscale considered "arbitrary and capricious."
The court's judgment not only granted Grayscale's request for a review but also ordered the vacating of the commission's previous order. This means that the SEC is now obligated to revisit Grayscale's application, which it had previously denied.
In response to the court's decision, Grayscale's CEO, Michael Sonnenshein, took to Twitter on Tuesday, stating that the company's legal team is actively scrutinizing the implications of this significant win. This outcome could potentially pave the way for a new chapter in Grayscale's pursuit of a bitcoin ETF.
“This is a monumental step forward for American investors, the bitcoin ecosystem and all those who have been advocating for bitcoin exposure through the added protections of the ETF wrapper,”
Here is the official document from the court: https://grayscale.com/wp-content/uploads/2023/08/GBTC-Decision-829.pdf
The implication of Grayscale winning the SEC lawsuit
❒ Positive regulatory environment for Web3
❒ Increased approvals for Bitcoin ETFs
❒ Potential institutional investment influx
❒ Growth in Web3 ecosystem
❒ Boost for NFT market
It's a big win for the blockchain industry!
