The CEO of Grayscale Investments explains that the United States Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedures Act by not approving a spot bitcoin exchange-traded fund (ETF).
SEC Approval of Spot Bitcoin ETF Is “A Matter of When and Not If”
The U.S. Securities and Exchange Commission (SEC) has now approved not one but two different bitcoin futures exchange-traded fund (ETF) structures. This has led to optimism in the crypto industry that the securities watchdog is closer to approving a spot bitcoin ETF.
The first structure uses the Investment Company Act of 1940 (40 Act). Most of the Bitcoin futures ETFs offered to date are filed under this law. The second uses the Securities Act of 1933 (33 Act). The Teucrium Bitcoin Futures ETF was approved earlier this month using the latter structure.
Grayscale Investments CEO Michael Sonnenshein explained to CNBC last week, “From an SEC perspective, there were more protections than 40 Act products have than 33 [Securities Act of 1933] the products have not, but never have these protections addressed SEC concerns about bitcoin’s underlying market and the potential for fraud or manipulation.
He continued, “So the fact that they have now evolved their thinking and approved a 33 Act product with Teucrium really invalidates that argument and speaks to the connection between bitcoin futures and the underlying bitcoin spot markets. that give futures contracts their value. Sonnenshein said:
If the SEC cannot look at two similar issues, the futures ETF and the spot ETF, from the same perspective, this is in fact potentially grounds for violation of the Administrative Procedure Act.
The Administrative Procedure Act (APA) governs the process by which federal agencies develop and issue regulations.
Grayscale filed with the SEC on October 19 last year to convert its flagship bitcoin trust (GBTC) into a bitcoin ETF. GBTC is Grayscale’s largest product with nearly $26 billion in assets under management as of April 15. If approved by the SEC, GBTC will be listed on the New York Stock Exchange, instead of OTCQX.
The company is awaiting news from the SEC in early July on whether the filing will be approved. The CEO hinted that suing the SEC is a possible option the company will take if the agency does not approve the GBTC conversion.
Commenting on whether the SEC will approve a spot bitcoin ETF, Sonnenshein pointed out:
It’s really, in our view, a question of when and not if.
Do you think the SEC will soon approve a spot bitcoin ETF? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
We want to say thanks to the writer of this short article for this amazing content
SEC Risks Violation Of Administrative Procedure Act By Rejecting Spot Bitcoin ETFs, Says Grayscale BlockBlog
Take a look at our social media profiles as well as other related pageshttps://metfabtech.com/related-pages/