Greyscale initiates lawsuit against the SEC for refusing to list

Grayscale has submitted a lawsuit against the US stock exchange supervisory authority Securities and Exchange Commission after the US regulatory authority rejected the group's offer to convert the world's largest crypto investment vehicle into a fund listed on Wall Street.

The company submitted an application for review at the Court of Appeal in the District of Columbia on Wednesday to contest the rejection of the SEC's application to convert its $ 40 billion-bit-Bitcoin trust.

In a submission, the SEC argued that Nyse Arca - which wanted to list the product of Grayscale - did not meet requirements, "prevent fraudulent and manipulative actions and practices" and "protect investors and the public interest".

The rejection was carried out when the SEC debated whether US ETFs were allowed to hold Bitcoin instead of derivatives that are connected to digital tokens for the first time.

The regulatory authority- which has reinforced the control of the crypto sector under the chairman Gary Gensler- had resisted this type of products because it feared that the tokens on unregulated stock exchanges were acted with surveillance and manipulation risks.

The SEC has approved ETFs that hold crypto futures, but these instruments are traded on regulated platforms.

Michael Sonnenshein, CEO of Grayscale, said in a statement that he was "deeply disappointed" and that "vehemently" did not agree to the decision of the Sec. He added that Grayscale would continue to use the company's entire resources to work for our investors and the fair regulatory treatment of Bitcoin system vehicles ".

The SEC did not react immediately to inquiries about comments.

The decision of the regulatory authority gave the crypto players who hope to launch a spot bitcoin ETF for Grayscale. Earlier applications of several competitors for similar instruments were unsuccessful.

Donald Retrilli, a leading legal strategist from Grayscale, said in a statement that the SEC "does not use uniform treatment of similar investment vehicles and therefore act arbitrarily and moody".

Grayscale originally submitted an application to convert his Bitcoin Trust and made a new advance this year after the SEC had accepted the Teucrium-Futures-crypto-instrument in accordance with the rules that would regulate Spot-Bitcoin ETFs.

Craig Salm, Chief Legal Officer of Grayscale, the Financial Times said in April that after the Teucrium approval, the SEC “effectively loses the ability to leave the distinction” between rules for Futures ETFs and Spot ETFs as the reason for the rejection of associated funds Bitcoin.