Recently, the American justice system dismissed the SEC in a lawsuit against the asset manager Grayscale Investments. She acknowledged that the regulator was not entitled to reject, without reason, Grayscale’s Bitcoin ETF application. As the SEC is forced to clarify its position, Grayscale believes it must follow precedent. Including requests for bitcoin futures ETFs that it approved.
In short :
- Grayscale presses SEC for early approval of its Bitcoin ETF.
- The asset manager believes that the SEC cannot reject its application without reason, after having approved Bitcoin futures ETFs.
- The American financial markets watchdog has not yet announced its decision.
Grayscale forces the hand of the SEC to obtain its Bitcoin ETF
New development regarding the aftermath of the lawsuit won by Grayscale against the SEC regarding its rejected Bitcoin ETF application. On Tuesday, September 5, the asset manager called on the regulator to approve it as quickly as possible.
The request comes days after the SEC lost its case against the company. Justice having denied to the regulator the rejection of Grayscale’s ETF application, without giving reasons for its decision.
Concretely, the asset manager seems to want to put pressure on the SEC. For him, since the courts have decided the debates concerning this procedure, there is no justification for the SEC to delay in making a decision.
Obviously, Grayscale wants an urgent and positive outcome to this long-term legal battle. And the company has a strong argument. According to her, no decision other than pure and simple approval is admissible. Endorsement that the SEC has already granted in the past.
Indeed, there is a precedent since the SEC had to approve applications for bitcoin futures ETFs. A scenario, which for Grayscale is no different from spot Bitcoin ETF procedures. Which therefore justifies that the same rules be applied to them.
Complete vagueness on the position that the SEC will adopt
For DavisPolk, Grayscale’s law firm, given this evidence, the SEC must approve the asset manager’s request. “The best use of resources now is for the SEC to issue an order approving the product”DavisPolk said in the letter filed with the SEC.
And to add: “If another reason could be put forward to try to differentiate the two types of products, we are convinced that it would have already appeared.”
The question that now remains is what posture the SEC will adopt. For the moment, there is complete doubt regarding the answer to this question. Especially since historically, the regulator has often refused to approve Bitcoin ETF applications.
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