AFTER THE SEC REJECTED THE GRAYSCALE BID, GRAYSCALE SUED SEC
Grayscale Investments sues U.S. The Securities and Exchange Commission on Wednesday, shortly after a regulator rejected his bid to list the first bitcoin trading wallet.
The SEC has denied a number of proposed bitcoin ETFs in recent years, and in its decision Wednesday said Grayscale did not show that its proposal meets fraud prevention standards and "fraudulent practices and practices."
"We are deeply saddened and disapproved of its decision," Greyscale said in a statement, calling the SEC's decisions "absurd and unreasonable."
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"The SEC has failed to implement consistent treatment in bitcoin investment vehicles as evidenced by its denial of GBTC's request for a change to the local ETF, but the approval of several bitcoin ETFs in the future," Grayscale said. "If regulators are comfortable with ETFs that carry the output of a particular asset, they should be comfortable with the ETFs that own that asset."
Grayscale later Wednesday filed a lawsuit in the U.S. Court of Appeals in Washington, D.C. to review the SEC's order, which states that the regulator has violated the Administrative Procedure Act and the Securities Trading Act.
"The decision to pursue the case is not an easy one, but we trust our legal team, as well as our compelling, logical legal issues," Grayscale said in a statement.
Grayscale is one of the world's leading digital financial executives, and had filed earlier this month to allow its nearly $ 20 billion Bitcoin Trust to be converted into an ETF that would be traded on the NYSE Arca. Legal approval of local ETFs will be seen as a major milestone in the widespread adoption of crypto, and which may increase revenue in the broader crypto market.