Grayscale May Sue the SEC Over ETF Rejections
2 min read

Grayscale May Sue the SEC Over ETF Rejections

By News Desk

Digital asset management giant Grayscale may take legal action against the U.S. Securities and Exchange Commission (SEC) for its repeated rejections of proposed exchange-traded funds (ETFs).

Speaking in an interview with Bloomberg News, Grayscale CEO Michael Sonnenshein said that in the event that the SEC rejects its application to convert its Bitcoin Trust (GBTC) product into an ETF, all options would be considered to reverse the decision.

“I think all options are on the table. I think certainly it’s important that between now and the end of that 240-day process which ends in early July that the SEC hears from as many investors as possible, as well as academics, policymakers…Everybody has an opportunity to weigh in on these issues, and all of that is in fact considered as the SEC weighs the issue in front of us.”

Sonnenshein said that while Chair Gensler and the SEC have gotten the ball rolling on some aspects of regulatory clarity, such as the approval of Bitcoin futures ETFs, the agency isn’t doing enough to create a friendly crypto environment for US investors.

Image via Shutterstock

“GBTC today has been traded since 2015 and it’s been an SEC-reporting company since January of 2020,” he said.

“So every single day that it is trading and being bought and sold by investors and is not being folded into the familiarity and the protection of the ETF wrapper, we really don’t feel that the SEC is doing everything they can to actually protect investors.”

The CEO said that the two things that Grayscale is looking for from the SEC are:

“GBTC can move up to a national exchange like the New York Stock Exchange (NYSE), and then could also have that simultaneous creation and redemption process that would keep the shares trading in line with its net asset value.”

Sonnenshein asserted his stance that legal action would be possible when he tweeted out the interview to his followers:

Last month, Grayscale announced the launch of a campaign to encourage American investors to post their comments on the company’s application for an ETF.

“This campaign aims to educate and inspire the investment community to take action and make their voices heard on this historic decision,” Sonnenshein said.

Newsletter Inline

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Related Posts

SwissBorg Capital Raise
What Bear Market? SwissBorg Charges Ahead Amidst Harsh Crypto Conditions 
SwissBorg Capital Raise

What Bear Market? SwissBorg Charges Ahead Amidst Harsh Crypto Conditions 

December 17, 2022 6 min read
OKX invests in WAX
OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX
OKX invests in WAX

OKX Blockdream Ventures Invests Millions in GameFi and NFT Development on WAX

June 3, 2022 2 min read
Binance partners with the weekend
Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour
Binance partners with the weekend

Binance Partners with The Weekend to Provide First-Ever Web 3 Enhanced World Tour

June 3, 2022 2 min read
21Shares Releases Sixth State of Crypto Report
21Shares Releases Sixth State of Crypto Report: Summary
21Shares Releases Sixth State of Crypto Report

21Shares Releases Sixth State of Crypto Report: Summary

June 2, 2022 3 min read
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand
Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

Algorand and MakerX Commit 1M Algo to Migrate Terra Users to Algorand

June 2, 2022 2 min read
Regulators are “Not Allowing” Banks to Engage with Crypto
Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto
Regulators are “Not Allowing” Banks to Engage with Crypto

Bank of America CEO: Regulators are “Not Allowing” Banks to Engage with Crypto

June 1, 2022 2 min read
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution
US Conference of Mayors Introduces Blockchain Resolution

US Conference of Mayors Introduces Blockchain Resolution

June 1, 2022 2 min read