• The Grayscale Investments Bitcoin Trust has seen its shares spike in price as the company is currently engaged in a court battle with the SEC.
• The SEC has been attempting to penalize companies that don’t move in tandem with its narrative, with Kraken being one of the most recent cases.
• Grayscale is now suing the SEC for turning down their application for a BTC-based exchange-traded fund (ETF), and it looks like they may have a chance of winning their case.
Grayscale Investment’s Bitcoin Trust Jumps
The Grayscale Investments Bitcoin Trust has seen its share prices jump significantly over the past few weeks due to a court case against the Securities and Exchange Commission (SEC).
Grayscale Takes on The SEC
The SEC has been doing everything possible to regulate and monitor crypto companies, but this often results in heavy fines or other punishments. One such example was when Kraken was forced to pay a $30 million fee and suspend all staking activities after coming into conflict with the agency. Grayscale then went on to submit an application for a BTC-based exchange-traded fund (ETF) which was promptly rejected by the SEC, leading them to file suit against the federal organization.
Courtroom Encouragement
At first, it looked like Grayscale had no chance of succeeding against such powerful opposition, but things have since shifted in their favor, as CEO Michael Sonnenshein said after leaving the courtroom: “We were really encouraged.” This news is not only increasing optimism amongst shareholders of Grayscale’s bitcoin trust, but also giving other crypto companies confidence that they can take on similar legal battles without fear of retribution from the SEC.
Kraken’s Fine
Kraken was one of many crypto companies to incur penalties from the SEC. In addition to paying out a $30 million fine, they were also required to suspend all staking activities and services offered by them.
Grayscale vs The SEC
Not content with simply accepting rejection from the Securities Exchange Commission (SEC), Grayscale filed suit against them claiming that there was no legitimate reason for denying their application for an ETF based around spot trading BTCs. It appears now that they may be successful in their legal challenge and could set precedent for other digital currency companies looking to introduce new products without fear of repercussions from regulatory bodies.