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Grayscale Edges Closer to Victory in Legal Clash with SEC

Grayscale Edges Closer to Victory in Legal Clash with SEC

According to the litigation analyst at Bloomberg Intelligence, Elliott Stein, Grayscale is now in a good position to win the case against the SEC.

During the hearing, the judges appeared skeptical of the SEC’s argument that a spot Bitcoin ETF could be subject to fraud or manipulation, whereas a Bitcoin futures ETF would not be. The judges pushed back on this point and asked the SEC to provide more evidence to support their argument.

Stein noted that the judges’ questioning indicated that the SEC’s argument did not convince them and that Grayscale may have the upper hand in the legal battle.

Stein gave Grayscale a 70% chance of winning the case and obtaining a ruling from the court that vacates the SEC’s order rejecting their application.

Grayscale filed the lawsuit against the SEC last year after the regulator rejected the company’s application to convert the Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin (BTC) exchange-traded fund (ETF).

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Grayscale argued that the SEC had approved Bitcoin futures ETFs while denying spot Bitcoin ETFs, demonstrating inconsistency in its application of standards.

The SEC countered that a spot Bitcoin ETF was not regulated and, therefore, it could not guarantee that there was no fraud or manipulation in the underlying market. However, the judges appeared unconvinced by this argument and asked the SEC to provide more evidence to support its position.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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