Jake Chervinsky, chief policy officer of the Blockchain Association, said on social media that Grayscale’s victory over the SEC is huge.
The Federal Circuit rarely finds that an agency violated the APA through arbitrary and capricious conduct. The D.C. Circuit Court just caused a huge embarrassment to the SEC, but the ETF has yet to be approved.
The DC Circuit firmly rejected the SEC’s contention that Grayscale’s ETF proposal was not designed to protect against fraudulent and manipulative acts and practices.
The SEC has rejected bitcoin ETF spot proposals on this ground for a full decade. That era is now over. I have no doubt we will get a spot bitcoin ETF sooner or later.
The only question is whether the SEC wants to make itself more miserable. Believe me, if there is one more denial, there will be another lawsuit, and I strongly recommend that the SEC pick it up ASAP.