Grayscale CEO, Michael Sonnenshein has expressed uncertainty regarding the necessity of resubmitting the company’s application to the U.S. Securities and Exchange Commission (SEC) for the conversion of its Grayscale Bitcoin Trust (GBTC) product into a spot Bitcoin (BTC) Exchange Traded Fund (ETF).
This uncertainty comes despite the significant victory achieved by Grayscale against the regulatory agency. Sonnenshein’s remarks in an interview with Bloomberg Television reflect the complex and evolving landscape in cryptocurrency regulation. Grayscale’s recent success against the SEC combined with its ambition to transition GBTC into an ETF has sparked discussion about the potential need for revisiting the application.
Also, the prevailing optimism within the cryptocurrency community regarding the ETF conversion might suggest a re-evaluation of the regulatory approach. Notably, the move to convert GBTC into spot BTC ETF has been a focal point for Grayscale.
However, the regulatory process has proven intricate and prolonged because the commission failed to explain its different treatment of similar products. In response to the court order, the SEC was given a 45-day ultimatum to request an en banc hearing, that is, a hearing with the three judges, after which the court will give a final verdict detailing the next phase.
Undoubtedly, the SEC’s stance on cryptocurrency ETFs has been a topic of speculation and discussion for some time. While Sonnenstein’s uncertainty may stem from the intricacies of the regulatory process, it also underscores the evolving relationship between the cryptocurrency industry and the regulators.
The Grayscale Win Against The SEC
Interestingly, the crypto market surged on Tuesday after the US court ruled in favor of GBTC, a leading crypto asset manager, in its lawsuit against the U.S. SEC over its Bitcoin ETF application. The U.S. Court of Appeal Circuit Judge Neomi Rao said that the SEC did not offer any explanation as to why GBTC was in the wrong and that the agency failed to consider the benefits of a Bitcoin ETF for investors and the market.
Although the court ruling did not guarantee that Grayscale would be able to list its Bitcoin ETF, it only opened the door for further review and consideration by the SEC. Amidst Grayscale’s win, the crypto market is riding with positive momentum, with numerous cryptocurrencies trading in the green.