SEC Will Not Appeal Judge’s Ruling in Grayscale Lawsuit: Report

In a notable development, the United States Securities and Exchange Commission (SEC) is reportedly forgoing any plans to appeal the recent court decision that ruled in favor of Grayscale Investments.

SEC Will Not Challenge the Panel of Judges

As per the Reuters report, the choice of the SEC not challenging the D.C. Circuit Court of Appeals’ decision was brought to public attention through an October 13, citing an anonymous source knowledgeable about the situation. Should this report be accurate, it means the SEC will have to assess Grayscale’s application for a spot Bitcoin ETF and, if rejected, Grayscale has the option to appeal the decision.

Dialogue Between Grayscale and SEC to Begin Next Week

Along with the Reuters, Bloomberg analysts also anticipate that the SEC is unlikely to pursue an appeal to the Supreme Court. Bloomberg’s ETF analyst, James Seyffart, mentioned in his post on X: “I do not think they will appeal to the Supreme Court either. Dialogue between Grayscale and SEC should begin next week. Hoping for more info on next steps sometime next week or week after?”

Approval of Grayscale’s Bitcoin ETF

In addition, Seyffart proposed that we are likely to discover, “in the next week (or two),” the deadline by which the SEC must make a decision to approve or reject Grayscale’s spot Bitcoin ETF application.

Bitcoin Spot ETF Coming Soon?

Moreover, in a prior post on X on October 13, Seyffart reiterated his belief that there is a 90% likelihood of approval for a spot Bitcoin ETF application in January 2024, with a particular reference to the application from Cathie Wood’s ARK Invest.

Significantly, a recent court ruling regarding Grayscale’s Bitcoin approval in the context of its battle with the U.S. Securities and Exchange Commission (SEC) has played a pivotal role in boosting confidence levels. With the Grayscale legal victory in mind, the chances of obtaining approval surged to a remarkable 75%, with expectations of reaching 95% by the end of 2024.