World’s Largest Crypto Fund, Grayscale Considers Suing SEC If Bitcoin ETF Is Rejected. Grayscale CEO Michael Sonnenshein said the company is open to all ideas when it comes to converting GBTC. For years, the SEC has rejected bitcoin spot ETF applications, but Grayscale believes it will be approved sooner rather than later.
Grayscale is not ruling out legal action against the Securities and Exchange Commission, according to CEO Michael Sonnenshein, if the government continues to prohibit the development of a spot bitcoin ETF.
World’s Largest Crypto Fund, Grayscale Considers Suing SEC If Bitcoin ETF Is Rejected
The SEC has rejected bitcoin spot ETF applications for years. Grayscale is not ruling out legal action against the Securities and Exchange Commission. CEO Michael Sonnenshein said the company is open to all ideas when it comes to converting GBTC into bitcoin.
“I think all things are on the table,” Sonnenshein said when asked if Grayscale would consider launching an Administrative Procedure Act lawsuit if its application to transform the Grayscale Bitcoin Trust (GBTC) into an ETF is denied.
Sonnenshein noted, “The Grayscale team has focused our entire firm’s resources on transitioning our flagship fund, GBTC, into an ETF.” “It’s vital that investors understand that we have and will continue to speak for them.”
SEC is currently seeking public comments on whether or not a bitcoin spot ETF should be permitted. Investors, issuers, and other interested parties have until early July to submit comments to the regulator.
Greyscale offers an education page on its website as well as an email form for investors to provide feedback.
“This is a critical piece of the process,” Sonnenshein said. “Today, GBTC is owned by investors in all 50 states, and over 800,000 accounts in the United States are waiting for it to be converted into an ETF.”
SEC officials cited concerns about market manipulation as the primary obstacle to the approval of a spot product. The commission must apply the Exchange Act’s standards when assessing bitcoin spot ETPs, as it has for earlier requests to list bitcoin spot ETPs, SEC Chair Gary Gensler wrote recently.
“The commission must determine whether the proposed bitcoin spot ETP is designed to deter fraudulent and manipulative behavior and practices.” Despite the lengthy regulatory procedure, Sonnenshein is optimistic that Grayscale’s conversion to an ETF will be completed eventually.
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