According to the SEC, the application by Grayscale failed to answer the questions about preventing crypto market manipulation, among other concerns.
Coinbase Global Inc (NASDAQ: COIN), a leading US publicly traded cryptocurrency company, has ostensibly filed an amicus brief in support of a Grayscale Investments lawsuit against the Securities and Exchange Commission (SEC) for rejecting the firm’s proposal for a spot Bitcoin exchange-traded fund (ETF). Grayscale’s application to convert its $13.5 billion GBTC fund into a spot-based Bitcoin ETF was rejected by the SEC back in June.
According to the SEC, the application by Grayscale failed to answer the questions about preventing crypto market manipulation, among other concerns.
Grayscale was, however, prepared for any outcome from its application and quickly deployed its machinery to fight for a Bitcoin ETF after the SEC’s rejection bid. Reportedly, Grayscale called the SEC’s rejection “arbitrary, capricious, and discriminatory.”
Coinbase has undertaken several initiatives to protect the blockchain and cryptocurrency market from unfavorable policies. The company also backed a lawsuit against the United States treasury department for banning the Tornado Cash technology instead of selecting bad actors.
Coinbase Actions Reveal a Huge Demand from Institutional Investors
Coinbase serves various institutional investors from the United States and overseas. Furthermore, the company recently received an operations license in Europe and Australia. As such, the company has shown its commitment to the growth and success of the blockchain and cryptocurrency industry.
According to Coinbase and other interested parties in the Grayscale case, the SEC is acting on limited knowledge of blockchain technology and cryptocurrency.
“The Commission’s ‘thumb on the scale’ approach does not withstand scrutiny,” the groups said, calling spot ETFs “ideally suited” for investors who desire exposure to bitcoin. The groups added that the SEC had allowed “similar, riskier products to enter the market,” yet ETFs “plainly satisfy regulatory requirements for listing on a national securities exchange.”
The Grayscale case has attracted the attention of the Chamber of Digital Commerce and also the Coin Center. Notably, the Chamber of Digital Commerce is a member organization that promotes the acceptance and use of digital assets and blockchain-based technologies. The Chamber works closely with policymakers, regulatory agencies, and the industry to develop an environment that fosters innovation, jobs, and investment.
On the other hand, Coin Center is a leading non-profit research and advocacy centre focused on public policy issues facing cryptocurrency and decentralized computing technologies like Bitcoin and Ethereum. Coin Center produces and publishes policy research, educates policymakers and the media about cryptocurrencies, advocates for sound public policy, and engages in litigation to defend digital civil liberties.
Institutional investors led by MicroStrategy Inc (NASDAQ: MSTR) are quickly converting their cash reserves to Bitcoin, Ethereum, and other promising crypto assets. Furthermore, digital assets have shown better resilience with time, and global inflation has no signs of reverting anytime soon.
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