Blockchain advocacy groups file motion to support Grayscale in lawsuit against SEC

Four blockchain advocacy groups have filed amiciliae in support of Grayscales spot Bitcoin ETF lawsuit against the Securities and Exchange Commission (SEC).

Blockchain Association, Chamber of Digital Commerce, Chamber of Progress, and Coin Center Amici Curiae Filed in US District Court on October 18.

1/ Today we submitted an Amicus Brief in support of @grayscale It has filed a lawsuit against the SEC for denying Bitcoin’s spot ETP application.

We are proud to have taken this important step in supporting the cryptocurrency industry in providing U.S. consumers greater access to these innovative products. pic.twitter.com/YTMxm432oG

Blockchain Association (@BlockchainAssn) October 18, 2022

The SEC has rejected Grayscale’s application to convert the Bitcoin Trust (GBTC) into a spot Bitcoin ETF, citing market manipulation concerns.

Advocacy groups said the SEC’s refusal to grant spot approval to Bitcoin ETFs limits investor choice. They argued that some Americans are keen to own investment products that provide exposure to Bitcoin without purchasing the underlying asset.

The SEC has been accused of applying discriminatory standards to the valuation of Bitcoin spot and futures ETFs. The SEC has approved several futures ETFs but rejected several spot ETF applications.

As a result, the group alleges that the SEC violated the Administrative Procedure Act, which requires regulators not to discriminate against securities issuers.

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The group argued that spot ETFs are significantly safer and more stable than futures ETFs. Additionally, spot ETFs and futures ETFs all derive their value from the underlying Bitcoin market.

Advocacy groups have called on the SEC to reconsider its actions and approve a Grayscale Spot Bitcoin ETF.

Relentless grayscale for approval

Grayscale filed a lawsuit against the SEC on October 12, alleging that approval of a Bitcoin futures ETF without a spot ETF was discriminatory.

Grayscale CEO Michael Sonnenshein said investment firms will fight to win because they believe the SEC’s actions are flawed.

Barry Silbert, CEO of Digital Currency Group, added that the time has come for the SEC to approve a GBTC spot bitcoin ETF.

Yes, owned by over 850,000 Americans $GBTCIt’s time for the SEC to approve spot-based Bitcoin ETFs https://t.co/aFh00bX9QR

Barry Silbert (@BarrySilbert) October 12, 2022