In the Grayscale-SEC case, which is closely related to Bitcoin spot ETFs, the court once again postponed it. The new date and details for the cryptocurrency market are as follows…
A new date has been set for the Grayscale-SEC lawsuit
The legal process between the two dates back to June 2022. The US regulator SEC rejected Grayscale’s request to convert its Bitcoin trust (GBTC) product into an ETF during this period. The company then filed a lawsuit against the regulator. The critical decision was expected to emerge on August 22. Grayscale Chief Legal Officer Craig Salm recently announced that the decision has been delayed once again. All eyes will now be on Friday, when the second hearing will take place.
Unfortunately not only is there no @Grayscale DC Circuit decision today. But there are no decisions at all! $GBTC pic.twitter.com/MiZDzZiVL9
— Craig Salm (@CraigSalm) August 22, 2023
The Grayscale-SEC lawsuit was the result of a series of events related to the SEC’s stance on ETFs. Here’s a general rundown of how this case started:
- Grayscale’s request: Grayscale Investments is a company operating in the field of cryptocurrencies and digital asset management. The company filed with the SEC with a request to establish a Bitcoin spot ETF. But the SEC rejected the initial application.
- SEC’s reservations: The SEC has long voiced its reservations about Bitcoin spot ETFs. The Commission says that cryptocurrency markets may be open to manipulation. This is why he is cautious in approving ETFs.
- Litigation: Grayscale appealed against the SEC’s denial and filed suit in court. The company wanted to consider the SEC’s decision legally. He also argued that his application for a Bitcoin spot ETF is appropriate.
The crypto community embraces an air of nervous anticipation
The verdict of Grayscale’s lawsuit against the SEC has now been postponed to Friday. Despite several rejections, Grayscale is still hopeful that it can turn its product into a spot Bitcoin exchange-traded fund. Scott Johnsson, a partner at Davis Polk, says similar cases are usually resolved after about 160 days of verbal discussion. Grayscale’s case appeared about 170 days ago on March 7.
Moreover, before a new batch of legal trainees arrive, judges often choose to lighten the caseload. The next trainee rotation is scheduled to begin next month. According to a graphic presented by Johnsson, only 5% of the talks in September took place. Especially the majority of the talks show a decline in July and August.
Amid the news of the lawsuits, the Bitcoin price continued to move around $26,000 in the past 24 hours. cryptocoin.com As we reported, CoinShares reported that crypto money investment products experienced an outflow of $ 42 million last week, reflecting the interest in Bitcoin. This indicates a reversal of the previous week’s inflow. On the other hand, Ethereum is still trading at around $1,660. Fund flows to Ethereum, the largest crypto by market capitalization, pointed to an outflow of $9 million last week.
