Grayscale Beats the SEC
In a shock to traders, the closely followed lawsuit between crypto management firm Grayscale and the Securities and Exchange Commission finished in favor of crypto. As the crypto industry is unregulated and decentralized, several have expected it to undertake major litigation battles with the federal government as it becomes increasingly popular. Now, one of the larger cases has gone in favor of crypto, specifically the firm Grayscale. Over one year ago, Grayscale proposed a spot Bitcoin ETF, which is a tradeable security that tracks Bitcoin’s price without needing investors to buy the currency. That proposal for a Bitcoin ETF was shut down by the SEC, along with many other similar applications, as they believed it to not meet anti-fraud and investor protection standards. After a lawsuit by Grayscale, the U.S. Court of Appeals ruled on Tuesday in favor of the crypto management firm, claiming the SEC hadn’t provided sufficient and coherent evidence to block their application.
In light of the news, Bitcoin’s price surged over 7% along with other cryptocurrencies as investors were happy to hear the lighter-than-expected regulatory concerns over the industry. Not only does the ruling mean Grayscale will be able to launch their ETF, but several other major firms will be able to launch their own spot Bitcoin or Crypto ETFs, leaving the industry open for millions of more investors to participate.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.