Judges Consider Grayscale’s Arguments In Bitcoin ETF Hearing Against SEC

Judges Hear Grayscale’s Arguments in Epic Battle Against the SEC Over Bitcoin ETF

We are in desperate times, folks. The U.S. Securities and Exchange Commission (SEC) is trying to keep the people from getting their hands on a Bitcoin exchange-traded fund (ETF) and Grayscale Investments is attempting to make sure they don’t succeed. Like any great battle, both sides have touted their reasons, dispatching their best forces in the arena: legal representation.

Grayscale’s Arguments

It was an epic hearing last week as Grayscale took on the SEC with a legal team of six, who put forth the following arguments:

• Investors know what they’re buying: Grayscale stated that investors are aware of the risks associated with investing in a Bitcoin ETF, and that the SEC should not determine what is best for investors.
• Bitcoin has matured significantly: The legal team argued that Bitcoin has matured enough in the years since the SEC first denied a Bitcoin ETF, and that the investment vehicle should now be approved.
• The SEC’s position is outdated: Grayscale pointed out that the SEC’s position on Bitcoin ETFs is based on assumptions about the market made in 2017, which has since evolved significantly.

SEC’s Objections

The SEC put up a valiant defense, attempting to put a kibosh on Grayscale’s dreams of a Bitcoin ETF. Ultimately, the SEC made three points:

• Manipulation still exists in the market: The SEC argued that the market is still susceptible to manipulation, a key factor in their decision to deny Bitcoin ETFs in the past.
• The market is too volatile: The SEC suggested that the market remains too volatile for a Bitcoin ETF to succeed.
• There is no reliable price source: The SEC argued that there is no reliable price source for the ETF, making it difficult to ensure its fairness.

The Verdict

The three-judge panel at the hearing listened intently as both sides argued their cases. Only time will tell if Grayscale’s arguments will be enough to convince the panel to side with them, or if the SEC has the upper hand. May the odds be ever in the people’s favor!