Coinbase backs Grayscale’s EFT to alter the SEC’s rejection

Coinbase has filed an amicus brief against the SEC.
The brief notes that the SEC has not accepted the offer of the fir for a spot bitcoin exchange-traded fund.

Coinbase, a crypto exchange platform has filed an amicus brief backing a Grayscale Investments legal actions against the Securities and Exchange Commission for not accepting the offer of the company for a spot bitcoin (BTC) exchange-traded fund, in the one filed Tuesday through three trade groups describing a broad area of the crypto space backing the legal action.

The brief was submitted on Oct. 18 to the U.S. The Court of Appeals for the District of Columbia Circuit, the Blockchain Association, the Chamber of Digital Commerce and Coin Centre highlighted that the Securities and Exchange Commission had certainly rejected every offer to register ETFs that hold bitcoin, then accepting multiple ETPs that hold bitcoin subordinates.

The groups further said that the commission had permitted “identical, dangerous products to go to the market,” yet ETFs “directly please regulatory needs for registering on a national securities exchange.”

The Grayscale

Grayscale is a subordinate of Digital Currency Group, the mother firm of CoinDesk. Added in different membership lists of the Blockchain Association and the Chamber of Digital Commerce are Blockchain Capital, Chainalysis, Goldman Sachs, Binance.US and Fidelity.

Coin Centre is an academic and research institution centred on public law problems linked with crypto.

In June, the SEC rejected Grayscale’s appeal to change its flagship Grayscale Bitcoin Trust (GBTC) into an ETF from a trust. Grayscale then filed a petition against the regulator.

The commission has rejected the application as it was not able to answer the questions asked by the SEC about stopping market manipulation, along with other issues.

The opening legal brief was submittedlast week in which Grayscale referred the SEC’s rejection “arbitarary, capricious and discriminatory.”

Some analysts and experts were expecting an approval, although, highlighting that SEC Chair Gary Gensler has been constant in willing to witness more error of crypto exchanges before accepting a spot bitcoin in an ETF.

Supporters of accepting a spot bitcoin ETF have disputed that the product would propose a low-cost, effortlessly approachable way for persons and institutions to put their money in bitcoin. Grayscale has disputed powerfully that it is not consistent in accepting an ETF based on bitcoin futures but not permitting one based on the underlying investment.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing