The friend-of-the-court brief, signed by former U.S. regulatory officials, points out that the SEC is fine with ETFs based on a futures index that has an almost perfect correlation with a gauge based on spot prices. The SEC has based its opposition to spot-based ETFs on their vulnerability to fraud and manipulation, but the evidence indicates that they are no more at risk than futures.
Grayscale, which is getting support from crypto and traditional finance in its court battle, sued the SEC in June after the regulator rebuffed Grayscale’s attempt to convert its $12 billion bitcoin trust (GBTC) into a spot bitcoin ETF. Before the suit, more than 11,000 letters of support for Grayscale were received by the agency.
The five amicus curiae briefs, were filed with the Court of Appeals for the District of Columbia Wednesday. Grayscale supporters include crypto exchange Coinbase; industry advocates the Blockchain Association and Coin Center; the Chamber of Digital Commerce; NYSE Arca, the exchange that had sought permission to list Grayscale trust’s shares; and a group of academics and former regulators.
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