Grayscale CEO Talks Next Steps After Defeating The SEC In Court

In this article, we discuss the next steps for Grayscale CEO Barry Silbert, following the company’s recent victory against the Securities and Exchange Commission (SEC) in court. Silbert shares his plans and strategies for moving forward, as well as the potential implications of the ruling on the cryptocurrency industry. Gain insights into what to expect from Grayscale and how this victory could impact the regulatory landscape. Stay up-to-date with the latest developments in the crypto world.

Grayscale CEO Michael Sonnhenshein Discusses Latest Victory Against SEC

In a recent interview with CNBC’s Squawk Box, Grayscale CEO Michael Sonnhenshein spoke about his company’s recent triumph in its lawsuit against the Securities and Exchange Commission (SEC). During the conversation, Sonnhenshein highlighted the potential next steps for Grayscale and the impact it could have on investors.

What’s Next For Grayscale?

Sonnhenshein explained that the SEC now has 45 days to request a “rehearing” of the case, which serves as an appeal for the courts to reconsider the previous ruling. He emphasized the importance of following the federal rules of appellate procedure and stated that the court will issue a final mandate outlining the operational next steps.

The Wall Street Journal reported that the SEC spokeswoman stated that the agency is currently reviewing the court’s decision to determine its next course of action.

The court ruling concluded that the SEC’s denial of Grayscale’s conversion into a Bitcoin spot ETF was deemed “arbitrary and capricious.” The court also criticized the agency’s justifications for approving Bitcoin futures ETFs while rejecting Grayscale’s application, branding them as “unreasonable.”

The SEC has several options in response to the court ruling. It can approve Grayscale’s application, deny it based on another reason, or withdraw its prior approval of Bitcoin futures ETFs to remain consistent. It is worth noting that the SEC recently chose to appeal a major lawsuit against Ripple, which adds another layer of complexity to the situation.

Sonnhenshein argued that denying Grayscale’s application would directly contradict the SEC’s mandate and harm the current investors who are expecting the conversion to take place.

Lower Fees Expected

Sonnhenshein expressed confidence that Grayscale’s spot ETF will eventually receive approval. When this happens, he assured investors that the fund will “certainly be lowering fees.” Currently, Grayscale charges shareholders a 2% annual fee, which has received criticism for being exorbitant compared to other Bitcoin spot ETFs that charge a 1% management fee.

Sonnhenshein has previously defended the high fees, citing legal costs as the reason for the disparity.

Despite concerns about the timing of Grayscale’s potential approval, Sonnhenshein remains positive about the future of crypto as an asset class. He stated, “The investment community has never been more certain that crypto as an asset class is here to stay.”

In conclusion, Grayscale’s recent victory in its lawsuit against the SEC has paved the way for potential approval of its Bitcoin spot ETF in the future. As the SEC reviews its options and determines its next steps, investors eagerly await the outcome, with hopes of lower fees and continued growth in the cryptocurrency market.


Leave a Comment

Google News