The United States Securities and Exchange Commission (SEC) is on the verge of losing another legal case following a recent disclosure by renowned Fox Business producer and journalist Eleanor Terrett.
Terrett revealed via a tweet that the SEC has until midnight today to appeal Grayscale’s court victory against the regulatory body. Adding that the case would close in seven days if no successful move was initiated to review the previous ruling by the SEC.
🚨NEW: The @SECGov has until midnight tonight to appeal the @Grayscale decision. If they don’t, then in seven days from now the case will be closed and Grayscale can start working with SEC staff to get the process of approval rolling.
— Eleanor Terrett (@EleanorTerrett) October 13, 2023
Note: Grayscale would work with two SEC…
A Brief Overview Of What Went Down Between Both Parties
Grayscale, a leading crypto asset manager by assets under management, has been at loggerheads with the U.S. SEC over its plan to convert its Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF).
The SEC, being a recognized crypto regulatory body with powers to approve or reject initiatives like the one proposed by Grayscale, took a rigid stance on the crypto assets firm proposal, denying the platform the opportunity to convert its GBTC into a spot Bitcoin ETF.
SEC’s unyielding stance prompted Grayscale to sue the crypto regulatory body, which ended in favor of the crypto asset manager, as the court ordered the SEC, through the presiding Judge, Neomi Rao, to review its decision concerning Grayscale’s application on August 29.
SEC’s Silence Since August 29
It is worth mentioning that the SEC has kept mute about the court’s order on August 29. According to the report, the case would be closed in seven days if the regulatory body remains adamant in Filing for an appeal.
It is left to see how events turn out before midnight. For now, it could be said that the SEC might have been defeated, barring any last-minute decisions or developments.
Why Is the SEC Silent?
A possible reason why the SEC is silent could be that it’s working with Grayscale to kickstart the fund’s conversion approval process.
According to Terrett, the crypto asset manager platform will work in collaboration with the Division of Corporation Finance and Trading and Markets (T & M).
In addition, SEC’s failure to meet the deadline would imply that spot Bitcoin ETF launch is imminent and other leading U.S. financial firms like BlackRock and Fidelity Investments with plans to launch similar projects will be free to take on their projects.
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