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Grayscale’s Legal Team Criticizes SEC’s Handling of Bitcoin ETF Application

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It is reported that the legal team of Grayscale said that the way the United States Securities and Exchange Commission (SEC) handled its application for Bitcoi…

Grayscale’s Legal Team Criticizes SEC’s Handling of Bitcoin ETF Application

It is reported that the legal team of Grayscale said that the way the United States Securities and Exchange Commission (SEC) handled its application for Bitcoin Exchange Trading Fund (ETF) was “inconsistent” with its earlier decision on futures ETF. Donald B. Verrilli, the representative lawyer, said: “This is only a typical case. Treat similar cases and treat them differently.”

Grayscale legal team: SEC’s handling method of ETF is “inconsistent”

Interpretation of the news:


The legal team of Grayscale has criticized the United States Securities and Exchange Commission (SEC) for its handling of its application for a Bitcoin Exchange Trading Fund (ETF). The team led by Donald B. Verrilli considered SEC’s response to be “inconsistent” with its earlier decision on futures ETF.

Grayscale, a digital asset management firm that manages the world’s largest Bitcoin trust, filed an application with the SEC in 2016 to launch its Bitcoin investment trust as an ETF. The SEC had not approved any Bitcoin ETF at that time, citing concerns about security and market manipulation. Grayscale’s application has been pending since then.

Verrilli, who served as a solicitor general during President Barack Obama’s administration, pointed out the inconsistency in the SEC’s treatment of similar cases. He argued that SEC had approved the launch of futures ETFs despite similar concerns about security and manipulation. Verrilli emphasized that the SEC has the responsibility to treat similar cases in the same manner.

The legal team’s criticism of the SEC’s handling of the Bitcoin ETF application highlights the ongoing debate about the regulation of cryptocurrencies. While some advocates argue that regulation would legitimize cryptocurrencies and protect consumers, critics argue that excessive regulation would limit innovation and development of the technology.

Since Bitcoin’s inception, it has faced regulatory challenges from governments and financial institutions around the world. However, over the years, the regulatory environment has evolved, and some jurisdictions have recognized cryptocurrencies as assets that can be traded and invested.

The SEC’s response to Grayscale’s application for a Bitcoin ETF reflects the regulatory uncertainty that still surrounds the cryptocurrency market in the United States. The delay in approving Bitcoin ETFs has created a frustrating environment for investors who are looking for access to Bitcoin through conventional investment channels.

In conclusion, Grayscale’s legal team’s criticism of the SEC’s handling of the Bitcoin ETF application highlights the regulatory uncertainty that still surrounds the cryptocurrency market in the United States. The inconsistency in SEC’s treatment of similar cases raises questions about the regulatory body’s approach to cryptocurrencies. This ongoing debate underscores the need for a clearer regulatory framework that would legitimize cryptocurrencies and protect consumers while promoting innovation and development of the technology.

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