The nonprofit Blockchain Association filed a court brief regarding the case of Grayscale Investments against the U.S. Securities and Exchange Commission (SEC).
1/ Today we filed an amicus brief supporting @Grayscale in its suit against the SEC for rejecting its spot Bitcoin ETP application.
We’re proud to take this momentous step supporting the crypto industry to provide American consumers greater access to these innovative products. pic.twitter.com/YTMxm432oG
— Blockchain Association (@BlockchainAssn) October 18, 2022
“We are proud to have taken this important step in support of the crypto industry, to provide American consumers with broader access to these innovative products,” the statement said.
Speaking in the role of amici curiae, Blockchain Association called the regulator’s refusal to convert the GBTC trust into a Bitcoin ETF a violation. To date, the regulator has not approved any of the similar applications, but allowed exchange-traded funds based on Bitcoin futures from VanEck, Valkyrie Investments and ProShares.
3/ Americans are eager to own various products that offer exposure to Bitcoin, without needing to purchase Bitcoin directly. By denying this ETP, the SEC has forfeited their own ability to safely regulate and provide the necessary protections for all investors.
— Blockchain Association (@BlockchainAssn) October 18, 2022
“[…] the agency arbitrarily decided to deny Grayscale’s spot ETPs despite significant demand for these products”, emphasized the organization.
By denying Grayscale Investments’ application, the Commission “has lost its own ability to safely regulate and provide the necessary protections for all investors,” the authors of the statement added.
In their view, the SEC applies double standards in evaluating exchange-traded products.
“[This] is not only bad policy, but also a violation of law. The Commission should treat similar cases equally,” said the Blockchain Association.
The statement was also supported by Coin Center, the Chamber of Digital Commerce and a technology industry trade group.
On October 19, 2021, Grayscale filed an application to convert the Bitcoin Trust GBTC into a spot-based Bitcoin ETF.
On December 17 the SEC delayed a decision on the application, and in February 2022 took this step again. On June 30, the company filed suit against the regulator after its filings were ultimately denied.
In October, Grayscale Investments filed an opening brief in the case, describing the Commission’s position as inconsistent and unfair.
Earlier, the Wall Street Journal accused the head of the agency, Gary Gensler, of a “confusing” approach to approving a spot Bitcoin ETF.
Also voicing opposition to the regulator were billionaire Mark Cuban, a member of the U.S. House of Representatives Tom Emmer and Messari founder Ryan Selkis. According to the latter, Grayscale’s rejection constitutes fraud.
Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.