Grayscale Asset Manager has won its longstanding case against the US Securities and Exchange Commission (SEC).
The lawsuit began in October 2022, with the asset management firm waiting for a decision from the D.C. Circuit Court.
The case made headlines amid ongoing spot Bitcoin Exchange Traded Fund (ETF) mania when Grayscale wrote an open letter to the SEC. Through its legal team stewarded by Davis Polk, the asset manager attempted to convince the SEC why approving all the spot BTC ETF applications would be the better decision.
According to the court, the SEC's denial of Grayscale's spot ETF proposal was "arbitrary and capricious" given the commission's failure to explain why similar products are treated differently.
The victory means the SEC must review the rejection, which could lead to the approval of the first spot Bitcoin ETF in the United States:
ORDERED and ADJUDGED that Grayscale's petition for review be granted and the Commission's order be vacated, in accordance with the opinion of the court filed herein this date.
Still, the SEC has 45 days to appeal the ruling – in which case it would either go to the Supreme Court or an en banc panel review – or could still reject the application on other grounds.
Regardless, the outcome is a massive win for Bitcoin, miners, and the several defendants currently fighting the US SEC. It is also a big break for the cryptocurrency industry in general. While it does not mean that a Grayscale spot ETF and the rest of the applications will be approved immediately, it tilts the odds in favor of positive outcomes. The most important concern now remains whether a green light from the financial regulator will come in 2023.
Meanwhile, crypto markets have pivoted around the development, providing the much-needed impulse to break consolidation.
Bitcoin price is steadily approaching the $28,000 range, after rising approximately 7% to exchange hands for $27,940 at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.