In recent developments, the United States Court of Appeals for the D.C. Circuit has mandated the Securities and Exchange Commission (SEC) to reevaluate Grayscale Investments' application to convert its Bitcoin trust into a spot exchange-traded fund (ETF). The court ruled the SEC's initial rejection as "arbitrary and capricious", marking a significant victory for Grayscale in its legal battle against the regulatory body.
The lawsuit followed consistent rejections by the SEC of spot Bitcoin ETF applications citing market manipulation concerns. This practice has been maintained under current SEC Chair, Gary Gensler, sparking discussions around his past and current views on Bitcoin products.
Gensler's criticism of the SEC's inconsistent approach towards Bitcoin ETFs and futures, voiced during a fireside chat at the 2019 MIT Bitcoin Expo, recently resurfaced on social media platforms.
The court ruling acknowledged similarities between Grayscale's proposal and previously approved Bitcoin futures ETFs. This could set a precedent for other firms seeking approval for similar products.
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