New York, USA – October 31, 2023: A federal appeals court last week ordered the Securities and Exchange Commission (SEC) to revisit Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF). 1
The court’s ruling is viewed as a substantial win for Grayscale, with the potential to create broad ramifications within the cryptocurrency market.
In a ruling issued on October 30, 2023, the D.C. Circuit Court of Appeals concluded that the SEC had acted arbitrarily and capriciously in denying Grayscale’s application.
The court’s decision is a major victory for Grayscale, which has been battling the SEC for years over its Bitcoin ETF proposal. The SEC has argued that Bitcoin ETFs are too risky for investors, but the court’s ruling suggests that the agency may have to reconsider its position.
The court’s decision could also have a significant impact on the cryptocurrency market as a whole. The approval of a spot Bitcoin ETF would provide investors with a more direct way to invest in Bitcoin.
The court’s ruling is viewed as a substantial win for Grayscale, with the potential to create broad ramifications within the cryptocurrency market.
It is still unclear when the SEC will make a decision on Grayscale’s application. However, the court’s ruling is a significant step forward for Grayscale and the cryptocurrency industry as a whole.
The cryptocurrency industry has seen a surge in legal battles in recent years, but it has also achieved significant victories.
A major win came in the Ripple case, where the SEC sued Ripple in 2020, alleging the sale of unregistered securities. However, in 2023, a judge ruled in Ripple’s favor, stating that XRP was not a security.
In addition, the crypto industry has triumphed in other cases. In 2022, a judge allowed Telegram to launch Gram, rejecting the SEC’s claim that it was a security.
State regulators also faced setbacks in 2023, with a judge deeming New York’s BitLicense unconstitutional, citing its burden on crypto companies and violation of their First Amendment rights.
Industry leaders see these victories as signaling the maturation and mainstreaming of the crypto industry, despite ongoing regulatory issues.
- Bloomberg: https://www.bloomberg.com/news/articles/2023-10-23/grayscale-gets-court-order-in-fight-with-sec-over-bitcoin-etf[↩]
