In a significant decision for the crypto world, the U.S. Securities and Exchange Commission (SEC) is on the verge. With the looming deadline for a crucial decision, they must decide whether to challenge a recent court ruling about the Grayscale Bitcoin Trust (GBTC) in a Spot Bitcoin ETF lawsuit.
Deadline to Appeal Grayscale Ruling for SEC
The backdrop to this decision is a ruling by judges from the DC Circuit Court of Appeals back in August. These judges deemed the SEC’s actions arbitrary and capricious in denying the proposed conversion of GBTC into an ETF while saying yes to Bitcoin futures ETFs.
Now, the clock is ticking for the SEC, with a looming deadline of October 13 to determine if they will contest this ruling. Their choice holds significant implications for the fate of spot Bitcoin ETFs and their prospective launch timelines.
While some industry observers speculate that an SEC appeal might postpone the approval of Bitcoin ETFs, many believe the SEC is unlikely to appeal. Most people agree that Bitcoin ETFs are coming regardless of their ultimate decision.
Option’s Left For The SEC
The SEC’s next steps include deciding whether to appeal the case to the U.S. Supreme Court, provided a certiorari petition is accepted. Alternatively, they can request an “en banc” panel from the Court of Appeals to review the ruling.
If the SEC says no to fighting, the court will likely tell them what to do next. This may involve instructing the SEC to approve GBTC’s application as a spot Bitcoin ETF or revisiting the application for potential rejection on alternative grounds.
An SEC spokesperson said they are considering the court’s decision to decide what they will do. Conversely, Grayscale Investments has expressed its commitment to closely collaborate with the SEC to bring GBTC to NYSE Arca as a spot Bitcoin ETF.
As the deadline approaches, the cryptocurrency community and market observers eagerly await the SEC’s decision, knowing it could significantly influence the future of Bitcoin ETFs and the broader crypto landscape.
