A note on the Grayscale lawsuit.
As most bitcoiners know, Grayscales application to convert GBTC to a spot Bitcoin ETF was denied byt the SEC. Following this rejection Grayscale initiated a lawsuit against the SEC, claiming there was no reason to allow a futures ETF which is a derivative of BTC price, and not allow a spot ETF. The SEC claims manipulation of the Bitcoin market as their main concern for denying the petition.
While Grayscales CEO has been doing several interviews touting their case, just know that even if they win, it does not necessarily mean we will automatically get a bitcoin ETF. Grayscale will most likely have to refile and possibly wait the 240 days before receiving an answer. At that point the SEC can change their reasoning on the rejection and they go back to litigation.
There are two things that can possibly alleviate this. Either legislation regarding crypto and its regulation is passed, or if Grayscale wins and the ruling comes down exceptionally hard against the SEC. While the case against the SEC seems rather solid it is unlikely the court system will give significant relief to Grayscale even if it finds in their favor. Winning the case will of course be a step in the right direction, but it will most likely just be another small step.
Would love to hear opposing or different views on the Grayscale issue.
Texas
TexasBitcoiner / Texas
npub18u…vsutm
2023-02-28 16:35:39
Author Public Key
npub18uuutx0wqexgz40gtvul78hxygjaqsmnevp4czluljkcu0vuaguq2vsutmPublished at
2023-02-28 16:35:39Event JSON
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"content": "A note on the Grayscale lawsuit. \n\nAs most bitcoiners know, Grayscales application to convert GBTC to a spot Bitcoin ETF was denied byt the SEC. Following this rejection Grayscale initiated a lawsuit against the SEC, claiming there was no reason to allow a futures ETF which is a derivative of BTC price, and not allow a spot ETF. The SEC claims manipulation of the Bitcoin market as their main concern for denying the petition.\n\nWhile Grayscales CEO has been doing several interviews touting their case, just know that even if they win, it does not necessarily mean we will automatically get a bitcoin ETF. Grayscale will most likely have to refile and possibly wait the 240 days before receiving an answer. At that point the SEC can change their reasoning on the rejection and they go back to litigation. \n\nThere are two things that can possibly alleviate this. Either legislation regarding crypto and its regulation is passed, or if Grayscale wins and the ruling comes down exceptionally hard against the SEC. While the case against the SEC seems rather solid it is unlikely the court system will give significant relief to Grayscale even if it finds in their favor. Winning the case will of course be a step in the right direction, but it will most likely just be another small step. \n\nWould love to hear opposing or different views on the Grayscale issue.\n\nTexas",
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