Grayscale CEO Michael Sonnenshein outlined the next possible steps after securing a win against the SEC.
The CEO confirmed that his firm’s fees will drop if the conversion of GBTC to a BTC spot ETF is approved.
The SEC has close to 45 days to request a “rehearing” and appeal the decision made by the court.
Ultimately, the court will issue a final mandate that will detail the operational next steps,” Sonnenshein said.
The United States Securities and Exchange Commission (SEC) and digital asset management firm Grayscale have been engaged in a lawsuit for the past few months over the latter’s flagship product, GBTC. Interestingly, CEO Michael Sonnhenshein spoke to CNBC’s Squawk Box on Wednesday and talked about his firm’s latest victory against the US agency.
In the interview, Sonnenshein talked about the next steps and the possibility of an appeal while promising that the fees charged by Grayscale would drop if the conversion of GBTC to a Bitcoin spot ETF was approved by the authorities. Interestingly, the SEC has been hesitant when it comes to the approval of a spot exchange-traded fund (ETF) due to the crypto sector’s increased volatility and lack of investor protection
"We have to ensure that no one, especially the @SECGov, is not losing sight of the fact that nearly a million American investors own #GBTC today," says @grayscale CEO Michael Sonnenshein. "Inflicting any further harm on them would directly violate the SEC's mandate." pic.twitter.com/oM7kERYs1p
— Squawk Box (@SquawkCNBC) August 30, 2023
As per the Grayscale CEO, the SEC has close to 45 days to request a “rehearing” of the case. This appeal would make the courts reconsider the potential mistakes that might’ve occurred during the previous hearing
“We really have to be patient and follow the federal rules of appellate procedure here,” said Sonnhenshein. “Ultimately, the court will issue a final mandate that will detail the operational next steps.”
Additionally, a report from the Wall Street Journal stated the SEC is “reviewing the court’s decision to determine next steps” in the lawsuit filed by Grayscale. Interestingly, in the ruling, the court stated that the securities regulator was being “arbitrary and capricious” by denying Grayscale’s conversion into a Bitcoin spot ETF but approving Bitcoin futures ETFs at the same time. The court stated that the regulator’s justifications for doing so were “unreasonable.”
It is important to mention here that the SEC could approve the application filed by Grayscale for conversion of GBTC to BTC ETF or deny it based on some other reason. The regulator also has the option of withdrawing the approval provided to the Bitcoin futures ETFs in the past few months.
The SEC has yet to approve the applications for a Bitcoin spot ETF by BlackRock, ARK Invest, 21Shares, and other leading asset management companies.
Grayscale CEO Highlights Possible Steps After SEC Lawsuit
The United States Securities and Exchange Commission (SEC) and digital asset management firm Grayscale have been engaged in a lawsuit for the past few months over the latter’s flagship product, GBTC. Interestingly, CEO Michael Sonnhenshein spoke to CNBC’s Squawk Box on Wednesday and talked about his firm’s latest victory against the US agency.
In the interview, Sonnenshein talked about the next steps and the possibility of an appeal while promising that the fees charged by Grayscale would drop if the conversion of GBTC to a Bitcoin spot ETF was approved by the authorities. Interestingly, the SEC has been hesitant when it comes to the approval of a spot exchange-traded fund (ETF) due to the crypto sector’s increased volatility and lack of investor protection
As per the Grayscale CEO, the SEC has close to 45 days to request a “rehearing” of the case. This appeal would make the courts reconsider the potential mistakes that might’ve occurred during the previous hearing
Additionally, a report from the Wall Street Journal stated the SEC is “reviewing the court’s decision to determine next steps” in the lawsuit filed by Grayscale. Interestingly, in the ruling, the court stated that the securities regulator was being “arbitrary and capricious” by denying Grayscale’s conversion into a Bitcoin spot ETF but approving Bitcoin futures ETFs at the same time. The court stated that the regulator’s justifications for doing so were “unreasonable.”
It is important to mention here that the SEC could approve the application filed by Grayscale for conversion of GBTC to BTC ETF or deny it based on some other reason. The regulator also has the option of withdrawing the approval provided to the Bitcoin futures ETFs in the past few months.
The SEC has yet to approve the applications for a Bitcoin spot ETF by BlackRock, ARK Invest, 21Shares, and other leading asset management companies.