SEC battle is heating up
The Blockchain Association has come to the aid of the Grayscale Bitcoin Find as Grayscale filed its opening legal brief in a United States Court of Appeals.The Blockchain Association is dedicated to improving public policy for crypto networks and has members that are industry leaders, lawyers, research firms, security firms, and venture capital companies.
Earlier the SEC made the decision to deny the conversion of Grayscale’s Bitcoin Trust fund into a Bitcoin ETF. This is not new as the SEC is denying this type of request for many other companies while giving it to others- a move which Grayscale says is outrageously unfair.
On October 18,2022 The Blockchain Association filed its own amicus brief in respect to the appeal which stated
“By denying access to spot Bitcoin ETP’s , the SEC engages in an arbitrary and capricious practice of picking winners and losers among investment products”Marisa Tashman Coppel Association policy council
The amicus brief makes claims the SEC has contravened the BA’s own mandate ensuring “investors are free to choose products best suited to their goals and have the information necessary to make well-informed decisions” the brief goes on to state a sentiment that has been stated multiple other times by many ” The financial regulator has not established material differences between a Bitcoin futures based ETP and spot fund.
Marissa Coppel continued by stating there was a physically-backed palladium fund with the same market size and risks as Bitcoin that was approved by the SEC, thus showcasing how inconsistent the SEC was with their decisions to pass down regulations. The SEC was questioned on the legitimacy of some of its decisions as it seems as if the governmental agency is just after crypto and not focused on actually being fair and just. Further, it would seem as if the SEC is going beyond its own scope just for the sake of going after cryptocurrencies, this has been pointed out by others within the government who believe the SEC has jumped over its realm of scope. A video posted by Representative Tom Emmer can be seen on Twitter in such a situation.
Coppel continued by making the following statement :
“It is clear that the SEC has no basis for treating spot bitcoin products differently from bitcoin futures products. In so doing, the SEC has abandoned its investor protection mandate”
As the appeal carries on in court things are even direr for investors on Grayscale. The largest institutional Bitcoin fund on the market has assets under management worth $12.4 billion. The amount is currently trading at a record-low discount to the net asset value of -35.8%. The fund has depreciated almost 70% since the beginning of this year