In just a few months, the SEC will finally render its verdict on various Bitcoin ETF applications from different companies. The latest twist comes from the institution itself, as the American financial watchdog has decided not to appeal against Grayscale.
Grayscale had requested the SEC to grant them the right to launch a Bitcoin ETF on the market. Initially, the SEC refused, but the District Court of Appeals accused the regulator of making an ‘arbitrary and capricious’ decision in rejecting Grayscale’s request.
Since then, all eyes have been on the American financial watchdog, as it has the power to appeal the court’s decision.
This period of uncertainty hampers the thriving of the market and forces all players to hold their breath until the institution reveals its final position. Nevertheless, encouraging signs remain perceptible.
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SEC Does Not Appeal Court Decision in Grayscale Case
In essence, the SEC had until midnight this Friday to contest the court’s decision. Nonetheless, according to a source close to the matter, the regulator has decided not to pursue this option.
Now, several scenarios are possible. First, and most likely, the SEC and Grayscale will probably return to the negotiating table to potentially find common ground that could lead to the approval of Grayscale’s ETF.
However, this scenario remains unlikely, as the US regulator seems opposed in principle to any favorable decision for cryptocurrency companies. Consequently, the SEC could simply reject Grayscale’s request once again.
To do so, the SEC will inevitably have to provide new reasoning. Therefore, while the judge has already dismissed its arguments, citing the inconsistency of its reasoning, the SEC will have to demonstrate inventiveness and legal robustness to avoid losing face in the event of Grayscale’s appeal.
Indeed, if the SEC rejects Grayscale’s request again, the company will have the opportunity to return to court to contest the decision. So, the saga is far from over, but the final chapter draws near.
