As Grayscale fights the SEC in court to introduce the first sport Bitcoin exchange traded fund (ETF) to the US market, a sea of support has flooded in. The asset manager was supported by a number of well-known names in the cryptocurrency sector with Coinbase being the latest on the list.
The crypto exchange has submitted an amicus brief in support of Grayscale Investment’s lawsuit against the United States Securities and Exchange Commission (SEC) for rejecting the company’s application for a spot Bitcoin ETF earlier this year. The filing reads:
“The Commission’s use of a double standard to evaluate Bitcoin futures ETPs and spot ETPs is not only bad policy but also in contravention of the law. The Commission must treat cases alike. Because the Commission has not established material differences between Bitcoin futures ETPs and spot Bitcoin ETPs that warrant disparate treatment, its decision not to approve the Grayscale Trust is arbitrary and capricious and inconsistent with the Commission’s regulatory remit.”
Many are supporting Grayscale
According to reports, the SEC has received more than 11,000 letters in support of Grayscale’s intentions to turn the Grayscale Bitcoin Trust into a spot Bitcoin ETF.
Grayscale’s Chief Legal Officer, Craig Salm, revealed that more filings of this nature will be submitted before the due date. Other tech firms, including Susquehanna and the cryptocurrency bank Silvergate, have also sent support documents.
Amicus briefs, also called amicus curiae, are filed by organizations or individuals that are not involved in the case but believe they can offer expertise valuable to a court’s decision. These documents are filed by parties with a considerable interest in the issue but are not approved by any party to the action.
Submitted to the U.S. Court of Appeals for the District of Columbia Circuit, the filing by Coinbase clarifies that the Securities and Exchange Commission (SEC) has “categorically denied every proposal” for spot bitcoin ETFs in the U.S.
The Chamber of Digital Commerce, Coin Center, and the Blockchain Association all signed the brief, which claimed that “the Commission’s ‘thumb on the scale’ approach does not hold scrutiny.”
In March this year, Grayscale declared it was indicting the SEC for continuously preventing the fund from getting converted to a spot bitcoin ETF, which would have allowed Grayscale to possess bitcoin legally.