The digital currency ecosystem has been affected by… Fake update from Matrixport Contrary to popular belief, the US Securities and Exchange Commission (SEC) is likely to reject all Bitcoin ETF applications this month. If the market regulator chooses to reject these applications, senior cryptocurrency lawyer MetaLawMan has predicted the legal implications that would follow.
The rejection of a Bitcoin exchange-traded fund could spark a new wave of lawsuits
If the SEC risks rejecting spot Bitcoin ETF applications from the likes of BlackRock, Grayscale Investments, Ark 21Shares and others, it will likely be sued by the crowd, said MetaLawMan, known for its insight into critical industry litigation.
If the lawsuits are filed, MetaLawMan expects the D.C. Court of Appeals will again rule that the SEC was “arbitrary and capricious” in its ruling on more than a dozen Bitcoin ETF applicants. The veteran attorney shared this position by relying on precedent set in the lawsuit filed between the regulator and Grayscale Investments last year.
With the SEC initially denying Grayscale Investments' application to convert its Bitcoin Trust (GBTC) product into a full spot Bitcoin ETF product, the company sued the regulator and ultimately won the court's favor. Presiding Judge Sri Srinivasan, and Justices Niomi Rao and Harry Edwards Command SEC to go back to the drawing board and review Grayscale's application again.
Surprisingly, The markets regulator refused to appeal the decision As of the deadline, which means it complies with the court ruling. Relying on that, MetaLawMan said the SEC gave every reason why it rejected Grayscale and lost, and there is no indication it would want to follow that path again.
The SEC gave every reason it had to reject Grayscale, and lost.
I expect multiple approvals on January 10th.
-MetaLawMan (@MetaLawMan) January 3, 2024
The SEC's moves are promising
While the SEC, under the leadership of Gary Gensler, has not issued any formal statement regarding spot Bitcoin ETF applications and controversies in the ecosystem, its actions regarding the correspondence have proven promising.
in Latest updateThe SEC is reportedly meeting with international exchanges including the New York Stock Exchange (NYSE) and the high-tech Nasdaq Composite Exchange among others regarding the proposed spot Bitcoin ETF product.
Until the next decision is announced, which is expected to be issued before midnight, Cryptocurrency supporters remain optimistic That the game-changing product will eventually be launched.
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