BREAKING: Grayscale Victorious In SEC Lawsuit
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August 29, 2023 12:52 pm
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The Securities and Exchange Commission has not had a good year. …
Most recently, the agency lost against Ripple in court, and virtually all Presidential candidates with any relevance are pro-Bitcoin and pro-crypto.
Today, the SEC has taken another major blow by losing the Grayscale V SEC lawsuit.
During the summer of 2022, Grayscale Trust, an entity that is part of the Digital Currency Group, filed an application with the SEC to convert the Bitcoin trust into an ETF. …
The SEC denied the application and Grayscale promptly sued—this brings us to where we are today.
Grayscale’s victory in the lawsuit does not guarantee that the firm’s application for a Bitcoin ETF will ultimately be approved—it merely means the company is now allowed to file for an ETF.
Despite this, speculation that a Bitcoin ETF will be approved soon in the United States continues to mount. …Here’s more on the story:
BREAKING: There it is, @Grayscale wins their lawsuit against the SEC. DC Circuit court of appeals is vacating SEC's denial of $GBTC's conversion into an ETF. pic.twitter.com/gqFvMpmfnm
— James Seyffart (@JSeyff) August 29, 2023
The District of Columbia Court of Appeals has sided with Grayscale in its lawsuit against the SEC, paving the way for bitcoin ETFs. @Kr00ney reports. https://t.co/w2L4pcoPPM pic.twitter.com/S0WmcgIZel
— CNBC (@CNBC) August 29, 2023
Coin Telegraph explained:
Grayscale is the largest over-the-counter traded Bitcoin fund, with over $14 billion in assets under management.
Earlier this year, shares of GBTC traded at nearly 50% discount to the net asset value due to the firm’s then ongoing litigation with the SEC and credit concerns regarding its parent Digital Currency Group (DCG).
Watcher Guru reports that Bitcoin experienced a notable price hike on the heels of the Grayscale lawsuit decision. “Bitcoin rises to $27,400 after Grayscale wins lawsuit against SEC,” said the popular financial news outlet.
JUST IN: #Bitcoin rises to $27,400 after Grayscale wins lawsuit against SEC. pic.twitter.com/NcTKRjZ0Ip
— Watcher.Guru (@WatcherGuru) August 29, 2023
Bitcoin Magazine explained that #FireGaryGensler is now trending on Twitter following the decision in the Grayscale V SEC lawsuit.
JUST IN – #FireGaryGensler is trending after Grayscale wins it's lawsuit against the SEC over converting its fund to a spot #Bitcoin ETF. pic.twitter.com/xyAyu1qhST
— Bitcoin Magazine (@BitcoinMagazine) August 29, 2023
Crypto analyst Miles Deutscher writes: “Grayscale just officially won their lawsuit against the SEC, allowing them to convert their futures Bitcoin ETF into a spot ETF. The odds of other $BTC spot ETF approvals have now also significantly increased. This changes everything.”
Grayscale just officially won their lawsuit against the SEC, allowing them to convert their futures #Bitcoin ETF into a spot ETF.
The odds of other $BTC spot ETF approvals have now also significantly increased.
This changes everything. Time to pay attention again.. 🍿 pic.twitter.com/ggdhBKi4Yh
— Miles Deutscher (@milesdeutscher) August 29, 2023
According to The Block:
“The denial of Grayscale’s proposal was arbitrary and capricious because the Commission failed to explain its different treatment of similar products,” the opinion stated.
“We therefore grant Grayscale’s petition and vacate the order.”
The SEC has the next 45 days to request an en banc hearing, meaning a rehearing with all three judges.
After 45 days, the court will issue a final mandate that will have details on what happens next.
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