Blockchain Advocacy Groups File Motion to Support Grayscale in Lawsuit Against SEC
Four blockchain advocacy groups have filed amici curiae in support of Grayscale’s spot Bitcoin ETF lawsuit against the Securities and Exchange Commission (SEC).
The Blockchain Association, Chamber of Digital Commerce, Chamber of Progress and Coin Center were named as parties to the amici curiae filed in US District Court on October 18.
1/ Today we have submitted an amicus brief in support @Grayscale in its suit against the SEC to reject its spot Bitcoin ETP application.
We are proud to take this important step to support the crypto industry to give American consumers greater access to these innovative products. pic.twitter.com/YTMxm432oG
— Blockchain Association (@BlockchainAssn) 18 October 2022
The SEC had rejected Grayscale’s application to convert Bitcoin Trust (GBTC) into a spot Bitcoin ETF, citing concerns about market manipulation.
The advocacy groups said the SEC’s refusal to approve a spot Bitcoin ETF limits investors’ choices. They argued that more Americans were eager to own investment products that offer exposure to Bitcoin without buying the underlying asset.
The SEC was accused of using discriminatory standards in its evaluation of spot and futures Bitcoin ETFs. The SEC has approved several futures ETFs, but denied several spot ETF applications.
As a result, the group claims the SEC violated the Administrative Procedure Act, which mandates the regulator not to discriminate against securities issuers.
The group argued that spot ETFs are significantly safer and more stable than futures ETFs. Also, spot ETFs and futures ETFs drive all the values from the underlying Bitcoin market.
The advocacy groups have urged the SEC to reconsider its action and approve Grayscale’s spot Bitcoin ETF.
Shades of Gray relentlessly seeking approval
Grayscale filed a lawsuit against the SEC on October 12, claiming that the approval of Bitcoin Futures ETFs without spot ETFs was discriminatory.
Grayscale CEO Michael Sonnenshein said the investment firm will fight to win, as it considers the SEC’s action wrong.
Digital Currency Group CEO Barry Silbert added that it was time for the SEC to approve the GBTC spot Bitcoin ETF.
Yes, over 850,000 Americans own $GBTC. It’s time for the SEC to approve a spot-based bitcoin ETF https://t.co/aFh00bX9QR
— Barry Silbert (@BarrySilbert) 12 October 2022
