• Grayscale Bitcoin Trust has filed a lawsuit against the Securities and Exchange Commission (SEC) after its bitcoin ETF application was rejected.
• The judge overseeing the matter appears to be sympathetic towards Grayscale, which could result in a court victory for the firm.
• If successful, this would be a first for any crypto enterprise that’s taken on the SEC and it could potentially lead to increased prices for bitcoin.
Grayscale Challenges SEC
The Grayscale Bitcoin Trust recently filed a lawsuit against the Securities and Exchange Commission (SEC) after its bitcoin ETF application was rejected by the agency. This is one of few digital currency companies to take such action against the federal financial agency.
Judge Sympathetic Towards Grayscale
Initially, it was believed that the SEC would win this case due to their precedence in past legal battles; however, the judge overseeing this matter appears to be sympathetic towards Grayscale and they have an actual chance of winning. If successful, this would be a first for any crypto enterprise that’s taken on the SEC – leading to potential price increases of bitcoin.
Grayscale Seeing Momentum
Since filing suit against the SEC, shares of Grayscale have risen by more than 12 percent – showing great momentum for their potential victory in court. CEO Michael Sonnenshein commented during an interview: „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.“
Likelyhood of Success Increasing
Elliot Stein – senior litigation analyst at Bloomberg – believes that there is now greater chances of success for Grayscal in this case: „Going into [the] argument, we thought the SEC was 60 percent favored, yet we now think Grayscale is 70 percent likely to win.“ While optimistic about their chances in court, it still remains unclear how long these proceedings may drag out before reaching a verdict.
Overall, it looks like Grayscale Bitcoin Trust may have a real chance at defeating an industry giant like The Securities and Exchange Commission (SEC). With increasing support from both shareholders and analysts alike, only time will tell if they can secure a historic victory or not.