Grayscale Investments launched Filecoin Trust in March 2021 to give investors indirect exposure to the FIL token. Recently, the crypto investment firm voluntarily filed Form 10 with the SEC. She wanted to have the necessary authorization to make Filecoin Trust a reporting entity. But, for answer, the SEC had an unexpected reaction.
SEC won’t process Grayscale Investments request
Grayscale Investments, which is waging a battle for the Bitcoin ETF, made an announcement this Wednesday regarding the Form 10 filing with the SEC for Filecoin Trust. He revealed that the US regulator wants him to withdraw his request because the FIL would be an unregistered security. The SEC said the token “meets the definition of a security under federal securities laws“.
Grayscale Investments believes that the US regulator’s assertion is false and intends to prove it. “Grayscale does not believe that FIL is a security under federal securities laws and intends to respond promptly to SEC staff explaining the legal basis for Grayscale’s position.», has explained the crypto investment company.
Filecoin (FIL) Falls After SEC Statements
The price of the FIL token fell after the SEC declared it to be a security. Indeed, CoinGecko observed a decline of almost 3%. However, the asset managed to rebound slightly to currently trade around $4.5.
This whole story shows how closely SEC staff pay attention to cryptos and their status under the law. After all, agency president Gary Gensler believes that most cryptos are securities.
For industry players, cryptos are not securities. But, the Securities and Exchange Commission argues that it is the opposite. In this context, Gary Gensler has repeatedly urged crypto businesses to register with the SEC. In this regard, he said in February: “If this field has a chance to survive and succeed, it will be through time-tested rules and laws to protect the investing public.“. Meanwhile, crypto players are criticizing the SEC for still not having a clear definition for cryptocurrencies.
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