Last Updated: 20 October 2022
Support is piling up for Grayscale’s lawsuit against the US Securities and Exchange Commission (SEC).
The asset manager wants to prove its case in court regarding the first US spot bitcoin ETF. Big names are now rallying behind the company that currently offers the GBTC trust fund. So too is crypto exchange Coinbase, according to reports on Twitter.
@coinbase supports @Grayscale in its pursuit of approval for a spot BTC ETP from @SECGov. By its petition @Grayscale seeks no special favors, no special treatment– just the same standards as were applied to comparable BTC ETPs that were approved. Here's why: ⬇️ pic.twitter.com/6OF6IE5xIr
— paulgrewal.eth (@iampaulgrewal) October 19, 2022
The exchange filed a so-called amicus brief. By doing so, they are expressing their support for Grayscale Investments. This term refers to a body or person who is not a party to a case, but expresses their opinion or advice to a court.
In its fight against the stock market watchdog, Grayscale has also received support from several other organisations in recent days. Among others, the Blockchain Association, the Chamber of Digital Commerce, the Chamber of Progress and Coin Center backed Grayscale.
The groups stress that there is strong demand among individuals for exposure to bitcoin. Therefore, they say it is essential to offer a secure and transparent option.
In their court filing, the groups further argued that the SEC is applying a double standard. In doing so, they feel that the SEC is ignoring features that crypto exchanges have worked hard on.
One of the arguments is market manipulation. According to the foursome, the SEC refuses to recognise the exchanges’ “robust anti-fraud and anti-manipulation” features.
According to them, it is inconsistent to categorically reject applications. Using the double standard, they also refer to the futures-based bitcoin ETFs that have been on the market for almost a year.
The SEC has reportedly received more than 11,000 letters expressing support for Grayscale.