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The Securities and Exchange Commission (SEC) faces a midnight Friday deadline to contest the court’s ruling on the Grayscale lawsuit.
Fox Business journalist Eleanor Terrett has shared an important update regarding the lawsuit between the U.S. SEC and Grayscale Investments.
According to Terrett, the United States Securities and Exchange Commission has until midnight today to appeal the Grayscale ruling.
🚨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.
Note: Grayscale would work with two SEC…
— Eleanor Terrett (@EleanorTerrett) October 13, 2023
Grayscale Scores Major Victory Against SEC
On August 29, Grayscale scored a major victory against the SEC in its efforts to convert its Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF).
The SEC had rejected Grayscale’s application to convert the fund to a spot Bitcoin ETF, prompting the crypto asset manager to sue the regulator.
Following Grayscale’s court victory, U.S. Court of Appeals Circuit Judge Neomi Rao ordered the SEC to review the decision that led to the rejection.
Potential Moves in Grayscale v. SEC
Since the court’s ruling, the SEC has not publicly disclosed its next line of action regarding the lawsuit. Now, Terrett has disclosed that the SEC has until midnight to appeal.
The top journalist noted that the case will be closed in the next seven days if the SEC does not appeal the ruling before the deadline.
Consequently, Grayscale would start working with the SEC to commence the approval process for the fund’s conversion. Terrett also mentioned that Grayscale would work with two top SEC departments for approval – Division of Corporation Finance and Trading and Markets (T & M).
SEC’s Ongoing Battle Against Crypto Firms
It bears mentioning that the Grayscale case is one of the multiple crypto-related lawsuits in which the SEC is currently embroiled. The SEC is also in legal tussles against Ripple Labs, Binance, and Coinbase.
Each of them is important, as their outcome will help determine the future of crypto regulation in the U.S.
Spot Bitcoin ETF Launch on the Horizon
If the SEC chooses not to appeal the Grayscale ruling, the decision could lead to the birth of the first-ever spot Bitcoin ETF in the U.S.
Besides Grayscale’s application for a spot Bitcoin ETF, other top US-based financial giants, including BlackRock and Fidelity Investments, have also applied with the SEC to launch a similar product.
At press time, the SEC has yet to issue a decision on whether to approve the applications.
Grayscale Aims to Convert Its Ethereum Trust to Spot ETF
While the fate of Grayscale’s spot Bitcoin application hangs in the balance, the company recently filed with the SEC to convert its Ethereum Trust (ETHE) to a spot Ethereum ETF.
As reported, the crypto asset manager filed the request in partnership with New York Stock Exchange (NYSE) Arca.