Grayscale criticizes the SEC for the approval of a lit Bitcoin ETF, while the company is involved in a lawsuit against the regulatory authority because of the rejection of its spot

Grayscale criticizes the SEC for the approval of a lit Bitcoin ETF, while the company is involved in a lawsuit against the regulatory authority because of the rejection of its spot

The lawyers of the digital asset manager Grayscale have criticized the US stock exchange supervision SEC for their decision to approve a lit Bitcoin-based Exchange Traded Fund (ETF), while the company himself submitted a lawsuit for the rejection of its spot bitcoin ETFs against the regulatory authority.

In a letter to the US Court of Court of the District of Columbia, the lawyers argued that the SEC had approved an elevated ETF, which they considered a risky than the traditional stock market-based Bitcoin-based futures products from Grayscale. They also argued that this implies discriminatory treatment of spot-bitcoin ETPs. On Twitter they presented the letter they had submitted.

The lawyers said that the SEC could revoke the approval of all Bitcoin-based ETPs in order to remedy the supposed discrimination, but the Commission had clarified that it had no such intention. Last year, the SEC had rejected Grayscale's application for conversion of its Bitcoin Trust into an ETF, which led to the company submitting an appeal against the authority for alleged violation of the Administrative Procedure Act.

The CEO of Grayscale, Michael Sonnenshein, told Bloomberg that all options were on the table when he was asked whether Grayscale would sue the Sec. In fact, the company has already sued the SEC and claimed that the Commission had failed to treat similar investment instruments uniformly and behave "arbitrary and capricious".

The legal dispute between Grayscale and the SEC, which was negotiated before the DC Circuit Court, is expected to be completed by the end of the year. The fact that the SEC has now granted approval for a lit Bitcoin ETF, which is considered a risky step by the legal department of Grayscale, raises questions about the consistency of the decision-making of the regulatory authority.

The SEC has not yet officially responded to Grayscale's recent claims. It is claimed that the only way to fix the unequal treatment of Bitcoin-based ETPs by the Commission is to enable spot-bitcoin ETPS like that of Grayscale. However, the SEC has not yet announced any plans for the approval of a spot bitcoin ETFs and recently rejected several applications because they were not sufficiently clear and comprehensive.