Greyscale Investments has launched a legal challenge against the US Securities and Exchange Commission (SEC) after its request to convert the Grayscale Bitcoin Trust (GBTC) into an ETF was denied. ).
On June 29, it announced that its chief legal strategist, former United States Attorney General Donald P. Ferrelli Jr. has submitted a petition for review to the United States Court of Appeals for the District of Columbia Circuit, according to Mention the Coin Telegraph website.
Ferrelli stated that the latest decision shows that the SEC is acting arbitrarily and volatile by failing to enforce consistent treatment of similar investment vehicles and will pursue a legal challenge based on infringement The Securities and Exchange Commission alleged Administrative Procedure Act (APA) and Securities Act (SEA).
Greyscale Investments, which holds $12.92 billion in assets under management at GBTC, was awaiting a decision by the SEC to convert its main bitcoin fund into a spot fund Traded on the stock exchange since submitting its application to the regulator on October 19, 2021.
According to the application submitted to the securities regulator on June 29, the application was rejected to protect investors and the public interest because the proposal failed to explain how it was designed to prevent fraudulent and manipulative business and practices. .
The decision came a full week before the July 6 deadline, and came on the same day as a similar rejection of a Bitcoin exchange-traded product (ETP).
Grayscale CEO Michael Sonninchin said in a statement Wednesday that they are deeply disappointed and strongly disagree with the authority's decision to reject their application.
We will continue to utilize the company's full resources to advocate for our investors and the fair regulatory treatment of Bitcoin investment vehicles.
James Seifart, an exchange-traded fund analyst at Bloomberg Intelligence, told his 19,400 Twitter followers that while the lawsuit is being filed, a ruling is not expected from The court is on this until the third quarter of 2023 to the first quarter of 2024, which means we may not see the launch of the GBTC fund any time soon.
