Grayscale dead end? SEC's first legal brief rejecting Grayscale's ETF conversion: Futures and spot are completely different commodities
Grayscale officially sued the SEC for violating securities laws in June after its failed attempt to transition to a Bitcoin ETF. The SEC issued its first legal brief on the matter yesterday (10th).
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Grayscale's Official Response
Regarding this presentation, Grayscale's official response is as follows: The SEC approved a Bitcoin futures ETF but rejected a Bitcoin spot ETF, which is not fair to these investors.
The SEC's actions violate the Administrative Procedure Act and the Securities Exchange Act. The SEC did not explain the basis for their judgment.
Even though the SEC provided a 73-page report, it seems that there is no consensus between the two parties. Grayscale continues to focus on the fact that the spot market is not manipulated, while the SEC continues to emphasize the challenges of regulating the spot market, including issues with third-party custody and clearing.
The next presentation will be released before January 13, 2023, and the final presentation will be released before February 3, 2023.