Feb 26, 2023
SEC “Can’t Imagine” Why They Wouldn’t Protect Grayscale Investors
On February 25th, Grayscale Investments CEO Michael Sonnenshein took part in a What Bitcoin Did podcast, hosted by Peter McCormack, to discuss Grayscale’s recent lawsuit against the United States Securities and Exchange Commission (SEC).
The lawsuit was filed after the SEC denied Grayscale Bitcoin Trust (GBTC) to be an approved spot Bitcoin (BTC) exchange-traded fund (ETF) in June 2022. Sonnenshein believes this decision was in violation of the administrative procedures act, which ensures the regulator doesn’t act “arbitrarily” or show “favoritism.”
He noted that Grayscale took the SEC’s approval of Bitcoin Futures ETF as a sign that the regulator was warming up to Bitcoin, and that the approval of GBTC would return “a couple billion dollars” of capital to investors pockets overnight.
The SEC’s denial of Grayscale’s initial application was based on findings that the proposal did not sufficiently protect against fraud and manipulation.
Sonnenshein stated that Grayscale has over a “million investor accounts” and that the SEC’s decision was “arbitrary”, adding that he “can’t imagine” why the SEC wouldn’t want to protect investors and return the true asset value to them.
The firm is currently in the process of suing the SEC and could have a decision challenging the SEC denial of its initial application, by as late as “fall 2023.”
Grayscale is also focusing on NFT promotion and marketing, with the firm launching their own NFT marketing agency and Twitter NFT marketing campaigns.
The company is also working on selling NFTs, and is exploring ways to use crypto marketing to promote NFTs.
Sonnenshein believes that the approval of GBTC would be a major step forward in the web3 space, as it would open up a whole new world of possibilities for investors and the crypto industry as a whole.
He noted that Grayscale has a “commercial interest” in this approval, and if the application to challenge the SEC gets denied, the firm might be able to appeal the case at the U.S. Supreme Court.
The SEC’s decision is a major setback for the crypto industry, but it’s clear that Grayscale is determined to fight for the approval of GBTC and the true asset value to be returned to investors.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.