Grayscale Investments, a crypto asset management company, is preparing for a protracted legal battle with the Securities and Exchange Commission over the creation of a bitcoin exchange-traded fund.
The SEC rejected Grayscale’s request to convert its flagship Grayscale Bitcoin Trust (GBTC.PK) (GBTC) into an ETF in June, alleging that the proposal failed to adhere to guidelines intended to protect investors and prevent fraudulent conduct.
Grayscale accused the SEC of acting arbitrarily in denying spot bitcoin ETF applications, while previously approving bitcoin futures ETF applications. Grayscale filed a lawsuit against the SEC almost immediately after its proposal was rejected. The case is in charge of the Court of Appeals for the District of Columbia.
John Deaton’s opinion on the lawsuit
John Deaton, the founder of CryptoLaw, has been very active in updating the community on the Ripple vs SEC lawsuit. He has also been updating on the fight between Grayscale and the SEC.
X3 founder Andrew, in a recent tweet, updated in a recent tweet that there is a possibility of the Grayscale and Bitcoin case going to the Supreme Court here in the US. The brief is in front of the DC Circuit and believes that it is possible to win.
UPDATE: There is a possibility that the @Grayscale $GBTC and point #Bitcoin The ETF case reaches the Supreme Court here in the US.
**Sharp legal sources are impressed with the @Grayscale brief against the DC Circuit and believes that it is possible to win.
—Andrés (@AP_Abacus) January 26, 2023
In response to this, Deaton has explained that a victory is more than possible. He has mentioned that the chances of Grayscale winning before the DC Circuit is 50/50 and before the Supreme Court it is 75-80%. Furthermore, he has mentioned that SECGov’s denial of a spot BTC ETF while allowing both a futures ETF and a short ETF is arbitrary and capricious.
It seems that the Deaton firms believe in Grayscale’s victory against the SEC.
A victory is more than possible. I put the probabilities of a @Grayscale a 50/50 victory against the DC Circuit and a 75-80% victory before the Supreme Court. Under the law, the @SECGovthe denial of a place #BTC ETF while allowing both a futures ETF and a short ETF is arbitrary and capricious. https://t.co/22iKnNdhsB
— John E. Deaton (@JohnEDeaton1) January 26, 2023
Furthermore, in a follow-up tweet, Deaton explained that after the Supreme Court decision in West Virginia vs EPA, he has no doubt that the current composition of the US Supreme Court will rule in Ripple’s favor if it comes as far as this. far. The SEC did not limit its claims to apply only to Ripple’s XRP sales, but rather went too far.
And after the Supreme Court decision in West Virginia 🆚 EPA, I have no doubt that the current composition of the US Supreme Court will rule in favor of @Vibe if it gets that far The SEC did not limit its claims to apply solely to Ripple’s sales of #XRP. It went too far.
— John E. Deaton (@JohnEDeaton1) January 26, 2023
In this case, which concerned the EPA’s authority to control carbon emissions in order to combat climate change, the court’s decision led the United States Congress to prohibit the EPA from regulating plant emissions.
As a result, there are parallels with the SEC’s attempt to regulate the crypto arena, and winning the case against Ripple is the first step in establishing control of the nascent sector.
This post Lawyer Predicts Grayscale’s Supreme Court Victory Against SEC
was published first on https://coinpedia.org/news/lawyer-predicts-grayscales-win-against-the-sec-in-supreme-court/
