Grayscale Investments, the world’s largest digital currency asset manager, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) challenging the securities regulator’s decision to reject its application to convert the Grayscale Bitcoin Trust to a spot bitcoin exchange-traded fund (ETF).
Grayscale sues the SEC for a Spot Bitcoin ETF application
Grayscale Investments filed a “petition for review” Wednesday challenging the decision by the U.S. Securities and Exchange Commission (SEC) to deny the company’s application to convert the Grayscale Bitcoin Trust (GBTC) to a spot bitcoin exchange-traded fund (ETF).
Michael Sonnenshein, Grayscale’s CEO, tweeted soon after the SEC rejected his company’s application: “We’ve filed a lawsuit against the SEC.”
Sonnenshein commented: “We are deeply disappointed by and vehemently disagree with the SEC’s decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market.” He added:
We believe American investors overwhelmingly voiced a desire to see GBTC convert to a spot bitcoin ETF, which would unlock billions of dollars of investor capital while bringing the world’s largest bitcoin fund further into the U.S. regulatory perimeter.
Donald B. Verrilli Jr., Grayscale’s senior legal strategist and former U.S. solicitor general, detailed:
SEC fails to provide consistent treatment for similar investments vehicles and therefore acts arbitrarily, capriciously and in violation of Administrative Procedure Act and Securities Exchange Act of 1935.
The lawyer continued: “There is a compelling, common-sense argument here, and we look forward to resolving this matter productively and expeditiously.”
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