Prominent figures in the crypto community are looking out today for the U.S. court decision on the protracted legal case between the U.S. SEC and Grayscale Investments, a digital asset management company.
In particular, John Deaton, Managing Partner of the Deaton Law Firm, noted that a decision can be expected today or Friday. And according to him, the outcome will give the crypto industry more boost as the crux of Grayscale’s argument is about converting to a spot Bitcoin exchange-traded fund (ETF).
Be on the lookout today or Friday for a potential decision. This should hopefully give Crypto even more momentum. Even though “arbitrary and capricious” is a high and difficult standard to meet, I’ve always maintained the SEC will lose if someone fought back regarding a spot #BTC… https://t.co/WEjs7ohHqE
— John E Deaton (@JohnEDeaton1) August 15, 2023
Meanwhile, the crypto lawyer argued that it was highly improbable that the Securities and Exchange Commission (SEC) would triumph in the case. Deaton has maintained that the U.S. regulator cannot win a legal case regarding disapproving a spot Bitcoin ETF.
Deaton highlighted that the SEC rarely successfully litigated crypto-based cases as its chairman would want the industry to believe. The lawyer argued that the real astonishment would arise if the SEC did not lose the lawsuit.
Notably, Grayscale sued the SEC after the regulator rejected its application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF. In the disapproval note, the SEC argued that GBTC did not meet its standards for preventing fraud and protecting investors. The regulator added that the trust’s structure made it difficult to track the Bitcoin price accurately.
While the case is currently pending in the U.S. District Court, the slated date for a ruling is August 15, 2023. Last month, Grayscale made a compelling case by calling for the approval of spot Bitcoin ETF given that the SEC has previously approved futures ETF. According to studies, the firm argued that both investment vehicles show a 99% correlation.
