Grayscale's Legal Win Poses Ripple Effect for Crypto Markets
Discover how Grayscale's legal victory over the SEC in the cryptocurrency market is set to impact the progress of spot ETFs and the ongoing legal dramas surrounding Coinbase and Binance (BNB).
Posted 10 months ago in Blockchain
CFTC veteran Mike Selig, one of the most influential blockchain lawyers, believes that Grayscale's recent legal victory over the SEC will have significant implications for the progress of spot ETFs (Exchange-Traded Funds).
Selig, a cryptocurrency and finance lawyer at Willkie Farr & Gallagher LLP and former CFTC official, emphasizes that the impact of the Grayscale case should not be underestimated and can be beneficial for all ETF applicants including Binance (BNB) and Coinbase exchanges.
The ripple effect of the Grayscale decision is expected to lead to new legal charges against the U.S. Securities and Exchange Commission regarding the denial of approval for Ethereum futures exchange-traded funds. This forecast was made by Mike Selig himself on his X account on September 29, 2023.
By approving an Ethereum futures ETF, the SEC essentially acknowledges that Ether, the native cryptocurrency of the Ethereum (ETH) blockchain and the second-largest digital asset, is not a security. This development is crucial in the ongoing debate over the security status of Ethereum.
The Grayscale v. SEC case verdict will not only impact the progress of Ethereum ETFs but also affect the ongoing legal dramas surrounding Coinbase and Binance (BNB). Grayscale secured a significant win against the SEC in August 2023, with the judge ruling that the regulator failed to provide sufficient reasoning for approving futures products while rejecting Grayscale's spot BTC ETF offering.
Meanwhile, the SEC has postponed the deadlines for approving Bitcoin and Ethereum spot ETFs. Asset managers such as Bitwise, Grayscale, 21Shares, Ark, Valkyrie, WisdomTree, and others are eagerly awaiting the verdicts. In the meantime, these firms are launching new ETFs based on Bitcoin and Ethereum futures. Both Grayscale and Bitwise have already applied for futures-based ETF products, with the possibility of these products going live by October 2, 2023.
Last updated 9/30/2023, 7:22:07 PM
Related Articles
Coinbase Obtains Major Payment Institution License to Expand Operations in Singapore
Posted 9 months ago in Blockchain
Former FTX Customers and Investors to Testify Against Sam Bankman-Fried at Trial
Posted 9 months ago in Blockchain
Crypto and Blockchain Startups Secure Funding Despite Market Conditions
Posted 9 months ago in Blockchain
Tokenization: The Future of Securitization in the Financial Markets
Posted 9 months ago in Blockchain
News Letter
Subscribe to the CryptoCat.ai newsletter to stay updated with the latest cryptocurrency news, insightful articles, market trends, and more – delivered directly to your inbox!
Is email too old school? Well you can get your news directly on twitter just by following us
Follow Us