Grayscale, the US Securities and Stock Exchange Commission (SEC) reportedly objected to the decision to stop the Digital Large Cap Fund (GDLC) ETF. The company presented a reason that the SEC did not have the authority to make such a decision. Grayscale’s claim is that within the scope of Article 19B of the Stock Exchange Law of Stock Exchange, it has exceeded the limits of the SEC officials. Maybe those who remember BTC ETF’i Grayscale by Gensler’ın SEC’in after the case of the earnings of the earlier was forced to re -evaluate and approved.
Crypto Money Basket ETF
Grayscale had previously announced the intention of transforming Digital Large Cap Fund into ETF. The company stated that crypto assets planned to be more accessible to investors. However, SEC issued a stop ordering for Grayscale’s offer.
Grayscale, who opposed this stop order, questioned the legal foundations of the decision in question and argued that SEC could not withstand Article 19b to take such a step. Company officials said that the commission has attempted an application that exceeds the current limits regarding its powers.
Although SEC gave approval to the transformation, he froze it the next day. The SEC, which approved it for its last date, has not yet set a general framework for Altcoin ETFs, and approved the application rather than rejecting it. Then he freezes to confirm with other products. However, they said “Maraz is born from goodness, and Grayscale says,“ Approval ”using the gap here. Why does he do this? Of course, ETFs act with millions of millions (even BTC ETFs over 1 billion dollars) and act with the pain of their lost management fees while entering the daily net.
Application for legal remedies and possible results
Grayscale’s objection demands that the prostration decision be re -evaluated by legal means. A possible change of decision may pave the way for similar demands.
Grayscale made a statement on the subject as follows:
As Grayscale, we believe that the SEC does not have the authority to make such a stop and we will continue to defend this view on the legal basis.
The company said that it would exercise its legal rights during the process and will make necessary initiatives for the cancellation of the decision.
This legal process between Grayscale and SEC is the potential to test whether crypto assets can find more places in the financial markets and how wide the limits of authority of the relevant regulatory institutions are. It seems possible to continue similar demands and legal debates in the sector. Closely monitoring developments by investors can be interpreted as an indication that legal regulations can have significant effects on financial products.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
