Grayscale Challenges SEC Authority Over GDLC ETF Suspension in Legal Response

Grayscale and its legal team have formally challenged the SEC’s suspension order concerning the conversion of the GDLC ETF. According to Bloomberg analyst James Seyffart, the response letter asserts that the U.S. Securities and Exchange Commission lacks the jurisdiction to enforce such a suspension. This development marks a critical juncture in the ongoing regulatory discourse surrounding cryptocurrency exchange-traded funds. The legal contention underscores the complexities of regulatory oversight in the evolving digital asset market, emphasizing the need for clear statutory authority. Investors and market participants should closely monitor this case, as its outcome could set significant precedents for future crypto ETF approvals and regulatory frameworks.