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Grayscale’s lawsuit towards the U.S. Securities and Exchange Commission (SEC) for the denial of GBTC conversion to identify Bitcoin ETF picks tempo as issues have began to look in favor of Grayscale.

Crypto influencer Andrew in a tweet on February 21 shared that Grayscale’s possibilities to win the lawsuit towards the SEC are at present in dialogue within the crypto neighborhood. If Grayscale wins the lawsuit, the U.S. will get a correct spot Bitcoin ETF. The District of Columbia Court of Appeals will hear oral arguments on March 7.

“Legal minds believe their brief is powerful and the court may be prone to pushing back on regulatory overreach.”

While Grayscale is assured over its enchantment towards the SEC, a win might show to be a significant victory for the crypto trade. However, legal professionals consider if Grayscale loses the case, they’d take the case to the U.S. Supreme Court to have even higher possibilities of successful.

Craig Salm, chief authorized officer at Grayscale, shared a strong line from the opening temporary:

“At bottom, the Commission has arbitrarily rewarded bitcoin-futures ETPs for being vulnerable to two theoretical sources of fraud or manipulation—misconduct in the bitcoin futures market and misconduct in the spot bitcoin market—while arbitrarily penalizing spot-bitcoin ETPs for being exposed only to one…In ignoring that reality, the Commission has reached an unreasoned decision that unfairly discriminates between issuers in violation of the Exchange Act, see 15 U.S.C. § 78f(b)(5)—exactly what the APA forbids.”

Ripple supporter and lawyer John Deaton additionally expressed that Grayscale might win the lawsuit towards the SEC.

If the Court applies the regulation with these info, @Grayscale will win. The denial of a #Bitcoin spot ETF – after permitting each futures and brief #BTC ETFs – meets the very definition of arbitrary and capricious beneath the regulation. https://t.co/FY14EDtaJq

— John E Deaton (@JohnEDeaton1) February 20, 2023

Grayscale’s GBTC Trades At Discount Amid US SEC Lawsuit

In the context of the U.S. SEC-led crypto crackdown within the U.S., the case might show to be essential in driving market sentiment in favor of crypto.

Grayscale’s GBTC at present has complete holdings of $15.77 billion, with the value at $12.2. The GBTC continues to commerce at a reduction, with the premium fee at adverse 46%. Meanwhile, Bitcoin price appears to cross the $25K psychological stage.

Also Read: BlackRock Issues Metaverse Thematic ETF

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his data about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been related to the blockchain and cryptocurrency trade for a considerable interval and is at present masking all the newest updates and developments within the crypto trade.

The introduced content material might embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.