• Grayscale is involved in a lawsuit against the SEC for their refusal to approve a bitcoin exchange-traded fund (ETF).
• A federal appellate court judge is now set to hear arguments regarding the case.
• The SEC has long made itself an enemy of sorts to the crypto space, such as its legal proceedings against Kraken that ended with a $30 million penalty fee and forced it to end all staking services.
Grayscale Sues SEC
Earlier today, we published an article talking about a lawsuit between Alameda Research and Grayscale. The former is suing the latter and claims it’s holding roughly $9 billion in investment funds that can (and should) be going to its many customers. It turns out, Grayscale is also involved in a separate lawsuit against the Securities and Exchange Commission (SEC). Not long ago, the agency turned down the company’s application for a bitcoin exchange-traded fund (ETF), which prompted them take legal action.
Appellate Court To Hear Arguments
Now, a federal appellate court judge is set to hear arguments regarding this case. Many are keeping their fingers crossed hoping the judge sees things in Grayscale’s favor, as this could legitimize cryptocurrency in ways never done before if given rightful passage. Donald Verrilli Jr., U.S. solicitor general during Obama’s term and lead counsel for Grayscale explained: “The most basic way in which an agency can act in an arbitrary and capricious manner is to take like cases… and treat them differently, and essentially, that’s what we have here.“
SEC at Odds With Crypto Industry
The SEC has long been at odds with the crypto industry, as evidenced by its legal proceedings against Kraken that resulted in a $30 million penalty fee and forced them to end all staking services. This caused Coinbase head Brian Armstrong say he would defend staking “to the death” if necessary.
America Granted ETF – But With Caveats
While America has granted approval of bitcoin ETFs – but not based on spot trading (i.e., physical bitcoins) – they were instead lying on futures markets governed under 1940s law which many felt did not encompass cryptocurrency technology or blockchain technology properly.
This latest news from Grayscale indicates there could still be hope for legitimizing cryptocurrency within America’s borders through proper regulatory channels – something crypto enthusiasts have long desired since Bitcoin was invented back in 2009