Advertisement
Grayscale ready to face legal battle with SEC
Grayscale Investments hired Donald B. Verrilli Jr. is preparing for a legal battle with the U.S. Securities and Exchange Commission (SEC), if the regulator rejects the bitcoin spot ETF application on July 6.
Don Verrilli is a former U.S. attorney general who worked from 2011 to 2016 under barack Obama's administration. He is now a partner at the California law firm Munger, Tolles & Olson, and founded the Washington D.C. Office in 2016.
Verrilli is one of the most experienced lawyers in the United States with a deep understanding of the legal basis, administrative procedures, and practical issues of working with the judiciary." He has handled more than 50 cases before the U.S. Supreme Court, including several cases of direct handling of violations of the Administrative Procedure Act (APA).
Grayscale said on Twitter that he appreciated the opportunity to work with Verrilli to bring a positive solution to investors and the public.
Jake Chervinsky, head of policy for the Cryptocurrency Advocacy Blockchain Association, said the consolidation of Grayscale's legal team is a "strong step" that forced the SEC to end the "delay" in approving the Bitcoin Spot ETF.
SEC has repeatedly pushed back the timing of bitcoin spot ETF approval
The company has been waiting for a decision from the SEC to convert its top $19.8 billion Grayscale Bitcoin Trust (GBTC) into a Bitcoin Spot ETF, since filing with the regulator on Oct. 19, 2021.
Citing the need for a longer period of time to consider the proposed changes, The SEC delayed the approval of the decision in December 2021 and again in February of this year. A final decision is expected on the application on July 6.
In March, Grayscale CEO Michael Sonnenshein stated to Bloomberg that the company is willing to sue the SEC under the Administrative Procedure Act (APA) if the Bitcoin Spot ETF application is rejected by the financial regulator.
He also sharply criticized the regulator for adopting cryptocurrency futures ETF products in October 2021 but was slow to approve the Bitcoin Spot ETF.
Meanwhile, Citadel Securities, a market Maker that provides liquidity for cryptocurrency ETFs such as Grayscale claims to only support crypto ETFs with regulatory approval.
ETFs linked to cryptocurrencies are increasingly popular
According to data from ETFGI research firm ETFGI, the total assets invested in cryptocurrency ETFs and exchange-traded products (ETPs) globally reached $16.28 billion at the end of Q1 2022.
In February 2021, Canada launched its first Bitcoin ETF, the Purpose Bitcoin ETF, becoming one of the first countries in the world to adopt the Bitcoin Spot ETF.
On May 12, Australia launched the first Bitcoin Spot ETF, which included a Bitcoin ETF from Cosmos Asset Management, along with the Bitcoin Spot ETF and Ether (ETH) from 21Shares. Two other crypto-backed ETFs were launched on Monday, June 6.
In May, Grayscale began trading its first European ETF, called the Grayscale Future of Finance UCITS ETF, which is listed on the London Stock Exchange, Borsa Italiana as well as Deutsche Börse's Xetra electronic trading platform.
Summary
The SEC's approval of the Bitcoin ETF is an important piece of information that is expected by investors. That not only brings many opportunities to expand investment assets but also promotes the development of the cryptocurrency market.
