decrypt.co
The U.S. Securities and Exchange Commission believes Filecoin's FIL token qualifies a security, according to a Wednesday announcement from Grayscale Investments.
The major crypto investment firm had applied to the SEC to launch a Filecoin Trust product, which would give investors indirect exposure to FIL. (Disclosure: Protocol Labs, the company behind Filecoin, is one of Decrypt’s 22 investors.)
But the SEC told Grayscale in a letter yesterday that FIL "meets the definition of a security under the federal securities laws" and, therefore, the application must be withdrawn, according to the firm.
Representatives for Protocol Labs did not immediately respond to Decrypt's request for comment.
This story is a breaking story and will be updated.