Grayscale Investments launched a legal challenge
It against the Securities and Exchange Commission (SEC)
Previously, they are denied to convert their application
From Grayscale Bitcoin Trust (GBTC)
Into a spot-based Bitcoin exchange-traded fund (ETF).
Certainly, Grayscale Investments has much enough asset
They have $12.92 billion of assets under management
And its is in GBTC
Which waiting on a decision from the SEC
To convert its flagship Bitcoin trust into a spot-based ETF
Since filing its application to the regulator on October 19, 2021.
According to a filing from the securities regulator on June 29,
The application was disapproved to protect investors and the public interest
Because the proposal failed to demonstrate how it is,
Designed to prevent fraudulent and manipulative acts and practices.
Furthermore, Senior Legal Strategist, former U.S. Solicitor General Donald B. Verrilli Jr.
Had filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit.
It was happened on June, 29
Moreover, Verrelli stated that the latest decision shows that the SEC is acting
Arbitrarily and capriciously by failing to apply consistent treatment
To similar investment vehicles
And it will pursuing a legal challenge
Based on the SEC’s alleged violation of the Administrative Procedure Act (APA)
And Securities Exchange Act (SEA).
In addition, the decision came out a full week before the July 6 deadline
And came on the same day
Likewise rejection of Bitwise’s Bitcoin exchange-traded product (ETP).
Then, Michael Sonnenshein, Grayscale’s CEO describe his regret,
He said that they “deeply disappointed” and “vehemently disagree”
Because of the SEC’s decision to deny their application.
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