Grayscale Vs SEC: Associations Files Amicus Brief Supporting Spot Bitcoin ETF

Four associations The Blockchain Association, The Chamber of Digital Commerce, and Chamber of Progress, and Coin Center file amicus curiae in support of Grayscale in the lawsuit against the Securities and Exchange Commission (SEC). Grayscale called the SEC’s decision to reject the conversion of its Grayscale Bitcoin Trust (GBTC) into spot Bitcoin ETF as “discriminatory.”

Associations Support Grayscale in Its Lawsuit Against the SEC

Grayscale Investments in a tweet on October 19 revealed that the Blockchain Association and three other trade associations supporting the spot Bitcoin ETF filed an amicus brief supporting the firm in its lawsuit against the SEC.

“Investors deserve the right to choose how they access their BTC. We’re thankful for the support of the Blockchain Association as we work to make this ideal into a reality.”

According to the amicus brief, The Blockchain Association, The Chamber of Digital Commerce, and Chamber of Progress, and Coin Center urges the SEC to reconsider its rejection and approve the spot Bitcoin ETF for public use.

Despite approving several Bitcoin futures ETFs, the SEC continues to reject all spot Bitcoin ETF applications. The SEC action has violated the Administrative Procedures Act that mandate the regulator to not discriminate among securities issuers.

Investors can directly trade cryptocurrencies like Bitcoin through available options such as crypto exchanges. However, associations strongly believe the ETP helps in investor protection and allows investors to gain exposure to Bitcoin indirectly. Moreover, Bitcoin futures ETPs and spot Bitcoin ETPs drive value from the same underlying Bitcoin market.

Investors have shown interest in owning products that offer exposure to Bitcoin. Therefore, risks have been disclosed in the products and investors may decide whether they want to take the risks or not.

Grayscale CEO Michael Sonnenshein Criticized the SEC

Grayscale earlier filed a legal brief against the SEC for rejecting the conversion of its Grayscale Bitcoin Trust (GBTC) into spot Bitcoin ETF. The SEC cited risks of fraud and market manipulation to turn down the proposal.

Michael Sonnenshein, CEO of Grayscale Investments, said SEC action to treat the Bitcoin futures ETF and Bitcoin spot ETF disparately violates the APA rule. Moreover, he urges the Congress to resolve the conflict between the SEC and CFTC regarding crypto jurisdiction.