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Associations File Bitcoin ETF Amicus Brief | Grayscale Vs SEC

Associations Files Amicus Brief in Support of a Bitcoin ETF. According to the amicus brief, the organization urges the SEC to rethink its denial and allow the spot BTC ETF for public use. 

19-Oct-2022 By: Ashish Sarswat
Associations File Bi

Four organizations The Blockchain Association, the Chamber of Digital Commerce, the Chamber of Progress, and the Coin Center have filed amicus briefs in favor of Grayscale in the SEC lawsuit.

 Grayscale called the SEC's decision to reject its Grayscale Bitcoin Trust (GBTC) conversion into a spot Bitcoin ETF as "discriminatory."

In a tweet on October 19, Grayscale Investments stated that the Blockchain Association and three other trade groups supporting the spot Bitcoin ETF had submitted an amicus brief in favor of the firm's action against the SEC.

“Investors have the freedom to select how they want to access their Bitcoin. We appreciate the Blockchain Association's assistance in making this vision a reality.”

According to the amicus brief, The Blockchain Association, The Chamber of Digital Commerce, The Chamber of Progress, and the Coin Center urge the SEC to rethink its denial and allow the spot Bitcoin ETF for public use.

Despite the approval of multiple Bitcoin futures ETFs, the SEC continues to reject all applications for spot Bitcoin ETFs. The SEC's decision violated the Administrative Procedures Act, which requires the agency not to discriminate between securities issuers.

Investors can trade cryptocurrencies such as Bitcoin directly through available options such as crypto exchanges. However, associations feel that the ETP provides investment protection and allows investors to obtain indirect exposure to Bitcoin. Furthermore, Bitcoin futures ETPs and spot Bitcoin ETPs both derive their value from the same underlying Bitcoin market.

Investors have expressed an interest in owning Bitcoin-related products. As a result, risks have been acknowledged in the goods, and investors may choose whether or not to assume the risks.

Grayscale CEO Michael Sonnenshein Criticized the SEC

Grayscale has previously filed a legal brief against the SEC for rejecting its Grayscale Bitcoin Trust (GBTC) conversion into a spot Bitcoin ETF. The SEC rejected the idea because of concerns regarding fraud and market manipulation.

Grayscale Investments CEO Michael Sonnenshein stated that the SEC's decision to classify the Bitcoin futures ETF and Bitcoin spot ETF differently breaches the APA rule. Furthermore, he wants Congress to address the conflict between the SEC and the CFTC on crypto jurisdiction.

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