Grayscale Sues the SEC
Grayscale Investments filed a lawsuit against the US Securities and Exchange Commission (SEC) over a decision taken by the regulator to reject the company’s application to convert a GBTC trust into a Bitcoin ETF.
The SEC press office said that Grayscale’s application was rejected due to non-compliance with the requirements for “preventing fraudulent and manipulative activities […], as well as protecting investors and the public interest.”
“Grayscale supports and believes in the SEC’s mandate to protect investors, maintain fair, orderly, and efficient markets and facilitate capital formation — and we are deeply disappointed by and vehemently disagree with the SEC’s decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market,” said Michael Sonnenshein, Grayscale’s CEO.
According to Grayscale lawyer Donald B. Verrily, the SEC fails to apply consistent treatment to similar investment vehicles and acts arbitrarily and whimsically in violation of the Administrative Procedure Act and the Securities Exchange Act of 1934.
The company previously pointed out that the SEC’s willingness to approve futures-based bitcoin ETFs while rejecting orders based on its spot variant may violate administrative procedures law.