grayscale said May 17th The U.S. Securities and Exchange Commission (SEC) has requested that the Filecoin Trust registration statement be withdrawn.
The SEC told Grayscale that Filecoin’s FIL token meets the definition of a security under relevant laws. This means that Grayscale’s Filecoin Trust is an investment firm. Grayscale was told to withdraw its registration “immediately.”
Grayscale claims that Filecoin’s FIL token is not a security and said it plans to comply with the SEC. However, Grayscale is uncertain whether the SEC will agree to its legal claims, allow it to seek settlement, or force Filecointrust to dissolve.
The news caused Filecoin to drop in value from $4.59 to $4.46 in a matter of minutes, a sudden drop of 3%. However, the asset value has since recovered to $4.57.
The Grayscale website lists the Filecoin Trust alongside numerous other cryptocurrency trusts, including the notable Grayscale Bitcoin Trust (GBTC).
It is unclear why the SEC specifically targeted the company’s Filecoin Trust. It is also unclear whether the securities regulator intends to take action against Filecoin itself or Grayscale’s other cryptocurrency trusts.
An article first appeared on CryptoSlate that the SEC has deemed Filecoin a security and asked Grayscale to withdraw its trust registration.