Bitcoin and its journey through the legal landscape has reached a significant milestone as the DC Circuit Court of Appeals solidifies Grayscale Investments’ win against the US Securities and Exchange Commission (SEC). In a decisive move, the court has shifted the responsibility back to the regulatory body, marking a pivotal moment in the ongoing battle between cryptocurrency and regulation.
In August, a trio of judges unanimously deemed the SEC’s decision to reject Grayscale’s proposal to convert its Bitcoin trust (GBTC) into an ETF, while allowing the introduction of Bitcoin futures funds, as “arbitrary and capricious.”
At that juncture, the court declared the SEC’s order denying the GBTC conversion would be “vacated.” The conclusive ruling, affirming this decision, was filed on Monday, arriving 10 days after the SEC’s 45-day window to appeal the court’s verdict against Grayscale had lapsed.
A spokesperson for Grayscale informed Blockworks on Monday, “the Grayscale team looks forward to continuing to work constructively with the SEC to convert GBTC to an ETF… GBTC is operationally ready, and we intend to move as expeditiously as possible on behalf of our investors.”
As anticipated, the ruling did not offer clear guidance on the next steps in the process.
— Eric Balchunas (@EricBalchunas) October 24, 2023
Now, it’s up to the SEC to make its move, with the agency having the option to either grant approval for Grayscale’s application or potentially reject it based on different reasons. The SEC is concurrently evaluating several other applications for spot Bitcoin ETFs, including those from major asset management players like BlackRock, Fidelity, and Franklin Templeton.
