Grayscale, the world’s largest Bitcoin fund, recently announced it will file a lawsuit against U.S. Securities and Exchange Commission after the organization rejected its ETF application, a spot bitcoin exchange-traded fund.
The CEO Michael Sonnenshein had already told the media that he would sue SEC if it rejected the application and now the company is ready to have a legal fight against the organization.
SEC seems to be cornering almost every company that has proposed a spot Bitcoin application to the firm. In May, SEC rejected One River Digital’s ETF proposal with the allegation that it didn’t satisfy the standards set for fraud-prevention measures.
The application requested the SEC to let the company convert its bitcoin trust to a spot ETF filed under the Securities Act of 1933 that “would unlock billions of dollars of unrealized shareholder value.” However, the Wall Street regulator didn’t give the green light to Grayscale
Following the rejection, in an interview with CNBC, Sonnenshein said, “The inconsistent treatment here by the SEC — allowing the products of the future to trade but denying the spot products to trade — is not looking at what is essentially the same exact market through a like lens here,” Sonnenshein said. “In fact, the treatment is quite disparate.”
He asked the U.S. government to propose a regulatory framework that “can actually allow businesses to grow and not squander innovation here in the U.S. as it relates to crypto.”