LUCKNOW (CoinChapter.com) — Grayscale Bitcoin Trust (GBTC) won its lawsuit against the United States Securities and Exchange Commission (SEC). The decision has far-reaching implications for the future of Bitcoin exchange-traded funds (ETFs).
The DC Circuit Court of Appeals’ panel of three judges has ruled in favor of Grayscale. On August 29, 2023, the Commission’s previous order rejecting Grayscale’s Bitcoin ETF application was “vacated.” This paves the way for a renewed review of Grayscale’s application.
“We agree,” said Circuit Judge RAO. “The denial of Grayscale’s proposal was arbitrary and capricious because the Commission failed to explain its different treatment of similar products. We, therefore, grant Grayscale’s petition and vacate the order.”
The victory came with the decisive order of U.S. Court of Appeals Circuit Judge Neomi Rao.
In her ruling, Judge Rao highlighted the SEC’s failure to explain its rejection of Grayscale’s application. However, it’s important to note that this victory does not guarantee an immediate listing of Grayscale’s spot Bitcoin ETF.
CEO’s Response: Active Review in Progress
Michael Sonnenshein, the CEO of Grayscale Investments, took to Twitter to express the company’s stance.
He mentioned that their legal team is “actively reviewing” the court opinion. This suggests that Grayscale is prepared for the next steps in the ETF application process.
This legal battle traces back to June 29, 2022, when the SEC denied Grayscale’s application to convert GBTC into a spot ETF.
The denial prompted a swift response from Grayscale’s senior legal strategist, former U.S. Solicitor General Donald B. Verrilli Jr. They filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit.
At the time, Michael Sonnenshein expressed deep disappointment with the SEC’s decision.
Grayscale winning Lawsuit Against SEC marks a significant moment in the cryptocurrency world. It underscores the ongoing efforts to bridge the gap between traditional financial systems and the digital asset space.
As the review process restarts, all eyes will be on Grayscale’s next move and the potential impact on the broader crypto market.