SEC fails to appeal in the Grayscale vs SEC suit, now what the next?
Now it is confirmed that the US SEC is not going to object to the court ruling in the Grayscale vs SEC suit on Bitcoin spot ETF approval.
The United States Securities and Exchange Commission (SEC) is the top financial regulatory body. This financial regulator always tried to regulate the crypto sector under traditional securities laws. In the past couple of years, the US SEC faced huge criticism from the crypto sector over harsh regulatory actions against this innovative sector.
13 Oct 2023 was the last date to appeal in the Grayscale vs SEC case but the SEC body failed to appeal. In short, the court ruling is now the final judgement in that suit & the SEC agency can’t do anything.
Grayscale vs SEC
In the last couple of years, the Grayscale firm tried its best to convert its Green Bitcoin Trust (GBTC) to a Bitcoin spot ETF product and for that company applied with the US SEC but the SEC body rejected that application.
In return, the Grayscale team sued the SEC body for such a blind decision to its application.
In August of this year, the court judge ruled that the SEC’s decision to reject Grayscale’s Bitcoin spot ETF applications was wrong.
As the appealing due date has passed, it is clear that the SEC has no chance to object to the court ruling in any way, and bitcoin proponents claim that soon the SEC body will green signal Grayscale’s Bitcoin spot ETF application.
Risks for Bitcoin futures ETF products
Currently, several Bitcoin futures ETF products are running in the US, approved by the US SEC in 2021 & 2022. Here there are some chances that the SEC body may plan to issue suspension orders against Bitcoin futures ETF products, to keep all the Bitcoin spot ETF applications under freezed state.
In the past, the whole crypto sector saw that the SEC body never showed sympathy to any crypto firm, despite the court ruling favoured that crypto company. For example, we can see in the XRP lawsuit in which the SEC agency appealed against the court ruling, despite 2 & half years of long court proceedings reached the conclusion that Ripple never violated securities laws.
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