Grayscale Vs SEC: DC Fast-Tracks Verbal Arguments In The Lawsuit

• The verbal arguments will now be heard on March 7, at 9:30 a.m.
• SEC rejected Grayscale’s application to convert GBTC into an ETF.
• Crypto experts believe that the conversion about GBTC would help the investors.

The District of Columbia Court of Appeals has declared that it wants to fast-track verbal arguments in Grayscale’s lawsuit against the Securities and Exchange Commission (SEC) to get a speedy resolution from the conflict.

Grayscale was expecting verbal arguments to start in the second quarter. However, it will now be heard on March 7, at 9:30 a.m. Last year, in June, Grayscale had filed a lawsuit against the SEC in June 2022 after SEC refused to allow Grayscale Bitcoin Trust (GBTC) to be converted into an ETF but approved a similar ProShares’ futures-based bitcoin ETF in October 2021.

The ruling faced multiple delays but the SEC rejected Grayscale’s application saying that Grayscale had not answered questions related to concerns about market manipulation and investor protections.

Crypto experts believe that the SEC allowing Grayscale to convert the GBTC into an ETF would further help the investors. They commented, “The SEC’s inaction has prevented bitcoin’s advancement into the U.S. regulatory perimeter, often forcing U.S investors offshore with less protection and oversight.”

 Infact, CEO of Grayscale recently stated:

We are seeing the consequences of the SEC’s priorities play out in real time—at the expense of U.S. investors.

Recently, Grayscale had filed a 42-page long reply brief with the US District Circuit Court of Appeals against SEC. It also mentioned that spot ETF would open up over $4 billion value for 850,000 investors.

Grayscale’s sister firm, Genesis Global, another subsidiary of DCG has also filed for bankruptcy. A speedy resolution in the lawsuit will help investors because Genesis bankruptcy might cause  Grayscale to liquidate more than 600,000 Bitcoin assets that it has in custody.

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