SEC Claims Filecoin (FIL) as Securities in a Letter to Grayscale

• Grayscale receives a letter from SEC stating FIL could be a security.
• FIL is trading at $4.54 with a 2.64% increase in price as per CoinMarketCap.

On May 17, a press release regarding the digital currency asset manager, Grayscale Investments is announced. It highlighted the Filecoin (FIL) Trust Product issue over the Securities and Exchange Commission (SEC) of the U.S. government. 

Whereas, the press release included:

“Grayscale received a comment letter from the SEC staff stating its view that the Trust’s underlying asset, FIL, meets the definition of a security under the federal securities laws and that therefore the Trust appears to meet the definition of an investment company under the Investment Company Act of 1940.”

One of the SEC staff has sent a comment letter to Grayscale about the withdrawal of Trust’s Registration Statement, this Tuesday. Since the product could be following the federal securities law, SEC prompted a letter. However, Grayscale denies the letter and replied:

“Grayscale cannot predict whether the SEC staff will be persuaded that Grayscale’s position is correct, and if not, whether it may become necessary for Grayscale to seek accommodations that would enable the Trust to register under the Investment Company Act of 1940 or, alternatively, seek dissolution of the Trust.”

Filecoin Updates

As SEC is purely focusing on taking several regulatory actions in the crypto market, Filecoin (FIL) turned into the victim currently. Anyhow, Filecoin isn’t having any massive surge or development lately. However, FIL is trading at $4.54 over a trading volume of around $149,336,444 as per CoinMarketCap at the time of analysis.  

In accordance with the graph, FIL slowed down over a month from $6.12 to $4.54 today. This resembles a bearish market with a loss of 25.78% in records over a 425 million circulating supply. Yet, the graph seems to be slightly bullish over the last 24 hours with a price change increase of 2.64%.

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