Bitcoin ETF: Grayscale's SEC case backed by Crypto Titan Coinbase

Cryptocurrency exchange Coinbase is assisting Grayscale in its legal battle against the US Securities and Exchange Commission (SEC).

Cryptocurrency asset manager Grayscale is suing the SEC in response to the agency's denial of a Bitcoin (BTC) exchange-traded fund (ETF) from the spot market.

A summary filed with the U.S. Court of Appeals for the District of Columbia on October 18 argued that the SEC's decision "unreasonably limited investor choice."

"In doing so, the Commission has abandoned its duty to protect investors and abused its self-determination by engaging in arbitrary and erratic practices in selecting winners and losers in a number of investment products."

The abstract was submitted by the Blockchain Association, the Chamber of Digital Commerce, the Chamber of Progress, and the Coin Center, which support Grayscale's claims.

Non-profit organizations participate in the case as amici curiae, the parties are not plaintiffs or defendants but intervene in the case to present their views.

“This issue concerns significant policy and regulatory issues that could have wide-ranging implications for digital assets and the blockchain ecosystem. Therefore, amici curiae is of interest to clarify areas where there is a significant need for regulatory clarity or consistency. "

The document states that other amici are also willing to submit their summary information to support Grayscale, including Coinbase.

“Attorney understands that the following persons also intend to submit summary information to assist petitioners: Coinbase Global, Inc. (“Coinbase”), the New York Stock Exchange (“NYSE”), the American Chamber of Commerce, and several former regulators and academics.”

Coinbase considers itself an ally of Grayscale in the lawsuit because it takes an active stance on crypto-related issues. Last month, the exchange's chief executive officer, Brian Armstrong, said it was important for the United States to pass crypto regulations to promote national innovation.

Oct 21, 2022

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