- The United States Securities and Exchange Commission (SEC) has lost the chance to overturn the court decision regarding Grayscale’s spot Bitcoin exchange-traded fund (ETF) approval.
- After a year-long legal battle, Grayscale achieved a historic victory in August from a federal court led by three judges.
- SEC’s decision not to appeal the court decision regarding Grayscale’s Bitcoin ETF provides an opportunity for the financial regulatory agency to reconsider the application.
SEC did not choose to appeal the court’s decision on Grayscale Bitcoin ETF: What action can the SEC take?
SEC Doesn’t Appeal Grayscale Bitcoin ETF Decision
The United States Securities and Exchange Commission (SEC) has lost the chance to overturn the court decision regarding Grayscale’s spot Bitcoin exchange-traded fund (ETF) approval. According to a source dated October 13 reported by COINOTAG, the financial institution will not appeal this decision in court.
The legal battle between the American regulatory agency and the asset management company dates back to last year. Grayscale had submitted an application for the transformation of Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The intention for transformation is part of the investment company’s plan to convert its main Trust products into ETFs.
Approval of the application would allow Grayscale to offer a Bitcoin-backed asset that more effectively tracks the price of Bitcoin than GBTC. Shortly after the agency rejected Grayscale’s request last year, the investment company filed a lawsuit against the SEC.
After a year-long legal battle, Grayscale achieved a historic victory in August from a federal court led by three judges. The judges deemed the SEC’s ongoing delay in approving Grayscale’s spot Bitcoin ETF request “arbitrary” and stated that it should be approved.
Following the court decision in favor of Grayscale in August, the financial regulator had the right to request an “en banc” court hearing, a type of hearing in which all court judges convene to decide an issue rather than a single judge or a small judge panel, with a 45-day window to do so.
Outlook for Approval
The fact is that the SEC’s decision not to appeal the court decision regarding Grayscale’s Bitcoin ETF provides an opportunity for the financial regulatory agency to reconsider the application.
However, this does not mean that the long-awaited spot Bitcoin ETF will be approved directly within the country. Jennifer Schulp, Director of Financial Regulation Studies at the Cato Institute’s Center for Monetary and Financial Alternatives, stated, “This doesn’t mean approval will come quickly, and the SEC may reconsider for different reasons, starting this legal battle over.
