Court to hear oral arguments in Grayscale’s lawsuit against the SEC in March

Please fol­low and like us:
Pin Share

A Unit­ed States appeals court is set to hear the oral argu­ments relat­ing to Grayscale Investment’s law­suit against the Secu­ri­ties and Exchange Com­mis­sion (SEC) over its deci­sion to deny Grayscale’s Bit­coin (BTC) spot exchange-trad­ed fund (ETF).

Accord­ing to a court motion filed on Jan. 23, both sides will present their argu­ments at the Dis­trict of Colum­bia Court of Appeals on March 7, at 9:30 am local time. 

Oral argu­ments are spo­ken pre­sen­ta­tions deliv­ered by attor­neys sum­ma­riz­ing why their clients should win the case. Each par­ty in the case takes turns direct­ly speak­ing and answer­ing ques­tions from the judge and is giv­en equal amounts of time to do so. 

In a tweet on Jan. 24, Grayscale Chief Legal Offi­cer Craig Salm said the new­ly filed motion was “wel­come news” as they were pre­vi­ous­ly antic­i­pat­ing oral argu­ments to be sched­uled “as soon as Q2.” 

The com­po­si­tion of the argu­ment pan­el in the Grayscale case will be revealed on Feb. 6, 30 days pri­or to the date of the oral argu­ment, while the amount of time for the argu­ment will be set in a sep­a­rate order, accord­ing to the motion.

Grayscale updates its appeals time­line with the date for the Oral Argu­ments motion Source: Grayscale

Grayscale ini­ti­at­ed its law­suit against the SEC in June after the reg­u­la­tor reject­ed its appli­ca­tion to con­vert its $12 bil­lion Grayscale Bit­coin Trust (GBTC) into a spot-based ETF.

Ear­li­er this month, Grayscale filed a reply brief with the D.C. Court of Appeals, claim­ing the SEC act­ed arbi­trar­i­ly in treat­ing spot-trad­ed ETFs dif­fer­ent­ly from futures-trad­ed prod­ucts and that the SEC exceed­ed its author­i­ty when it denied Grayscale’s appli­ca­tion for a Bit­coin ETF. 

Relat­ed: SEC’s ‘one-dimen­sion­al’ approach is slow­ing Bit­coin progress: Grayscale CEO

Grayscale CEO Michael Son­nen­shein reit­er­at­ed a sim­i­lar point dur­ing an inter­view on CNBC’s Squawk Box on Jan. 24, stating: 

“It’s impor­tant to remind the role that reg­u­la­tors like the SEC play when it comes to investors. They’re not here to tell investors what to or what not to invest in. They’re here to ensure all the prop­er dis­clo­sures are made […] so [investors] are aware of all the risks associated.”

Son­nen­shein said they were “cer­tain­ly expect­ing” a deci­sion from the courts regard­ing its case against the SEC in “Q2 or Q3 of this year.” 

“The frus­trat­ing thing for investors and cer­tain­ly the Grayscale team is that we’re actu­al­ly a busi­ness that was born in the U.S., made use of exist­ing U.S. reg­u­la­to­ry frame­works to bring cryp­to to investors in a safe and com­pli­ant way.”

“Meet­ing with both hous­es yes­ter­day and today, what we’re real­ly hear­ing […] is that had the SEC already approved this spot-Bit­coin ETF […] a lot of the recent investor harm we’ve seen in cryp­to would’ve been pre­vent­ed,” he added. 

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.