Coinbase filed an amicus brief supporting a Grayscale Investments lawsuit against the Securities and Exchange Commission (SEC) for rejecting the firm’s proposal for a spot bitcoin (BTC) exchange-traded fund, adding to one filed Tuesday by three trade groups representing a wide swath of the crypto industry supporting the lawsuit.
In the brief submitted Tuesday to the U.S. Court of Appeals for the District of Columbia Circuit, the Blockchain Association, the Chamber of Digital Commerce and Coin Center noted that the SEC had “categorically denied every proposal” to list ETFs that hold bitcoin, despite approving multiple ETPs that hold bitcoin derivatives (specifically, futures contracts).
“The Commission’s ‘thumb on the scale’ approach does not withstand scrutiny,” the groups said, calling spot ETFs “ideally suited” for investors who desire exposure to bitcoin. The groups added that the SEC had allowed “similar, riskier products to enter the market,” yet ETFs “plainly satisfy regulatory requirements for listing on a national securities exchange.”
‘Enforcement 40’ for 2020
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