Unchained Grayscale v. SEC: Who Won This Week’s Hearing? - Ep. 465
Mar 10, 2023
Elliott Stein is a Senior Litigation Analyst at Bloomberg Intelligence, specializing in the legal intricacies of the crypto sector. He discusses a recent court hearing on the SEC's rejection of Grayscale's bid for a bitcoin ETF. Stein notes the judges' skepticism towards the SEC's rationale for treating bitcoin futures differently from spot ETFs. He also shares insights on other critical cases like Ripple and delves into the potential impact of Grayscale's lawsuit on the broader crypto landscape, including implications for future ETF applications.
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Episode notes
Grayscale's Lawsuit
- Grayscale challenges the SEC's rejection of its spot Bitcoin ETF.
- The SEC has approved Bitcoin futures ETFs but not spot ETFs, creating an inconsistency.
Grayscale's Core Argument
- Grayscale argues the SEC applies inconsistent standards by approving Bitcoin futures ETFs while rejecting spot ETFs.
- The underlying assets are similar, deriving prices from Bitcoin, so both products should be treated equally.
SEC's Justification
- The SEC argues it applies consistent standards, but the products differ due to CFTC regulation of Bitcoin futures.
- They are comfortable with futures due to fraud and manipulation detection, unlike the unregulated spot market.
