• Grayscale Bitcoin Trust could be one of the few digital currency companies to get its way against the Securities and Exchange Commission (SEC).
• Grayscale filed suit against the agency, claiming there was no valid reason for its application to be hit with a „no.“
• The company’s shares have risen by more than 12 percent since the case was first submitted.
Grayscale Takes on SEC
The Grayscale Bitcoin Trust is attempting to go up against the Securities and Exchange Commission (SEC) over its bitcoin ETF application being rejected. After several months of deliberation, the company filed suit against the federal financial agency in hopes of overturning the rejection.
Interestingly enough, it looks like Grayscale might actually win their case as the judge appears to be quite sympathetic towards their cause. If this were to happen, it would be a first for any crypto enterprise that’s taken on the SEC. Already, this news has caused an uptick in momentum for Grayscale as their shares have risen by more than 12 percent since they first filed suit.
Grayscale CEO Michael Sonnenshein commented: “We walked out of the courtroom feeling encouraged and hopeful that those arguments would be persuasive to the court… This is a really misguided complaint.” Bloomberg senior litigation analyst Elliot Stein also weighed in with his opinion, stating “Going into [the] argument, we thought the SEC was 60 percent favored, yet we now think Grayscale is 70 percent likely to win.”
Positive Impact on Bitcoin?
If Grayscale were to succeed in their legal battle with the SEC, then many believe that bitcoin’s price would skyrocket due to increased confidence in digital currency investments. This could open many new doors for blockchain technology if investors feel secure investing in cryptocurrency-related products such as ETFs or trusts.
It remains uncertain whether or not Grayscale will prevail in court but all signs point towards them having a much better chance than other crypto enterprises before them who attempted something similar with no success. While there’s still some time before any verdict is reached, it definitely looks like things are trending positively for both Grayscale and cryptocurrency as a whole right now.