Crypto Hedge Fund FILED LAWSUIT AGAINST SEC TODAY!
What is on your screen right now is a true thing of beauty. It is a tweet from the ceo of greyscale, michael sun and shane, and it reads as follows: weve filed a lawsuit against the sec golf clap for mr sun and sheena everybody. Now we knew that this was highly likely likely to be coming. Ive been covering this anything having to do with crypto and the sec im, just as interested as you, so look its not just xrp holders in the xrp community, thats thats, under attack here, grayscale theyve filed, i think multiple times for a bitcoin spot etf. Today they were denied that spot beat uh spot bitcoin, etf and uh. They rolled out a lawsuit immediately. They wasted almost zero seconds, its truly impressive. How quickly this all came out so im going to share with you comments from attorney john deaton, as well as perry, ann boren, who is the founder of the digital chamber of commerce uh, who, by the way uh she made it publicly known. Ive mentioned this on the channel that uh her organization, the digital chamber of commerce, will be filing an amicus brief in the sec versus ripple case, so theyre on our side lets just say that, but before going any further, i do want to be clear that i Do not have a legal or financial background of any kind. I am not offering legal or financial advice and you definitely should not buy or sell anything because of anything that i say right im, just an enthusiast who enjoys making youtube videos about crypto related topics, but just as a hobby and just for fun.
By the way. This is not the video i thought i would be putting out right now. The news on this broke within the last few hours. So i set aside, i shelved at least temporarily, the content that i would have otherwise been recording right now, because this definitely takes precedent. Uh this is this, is a big deal uh pushing back against the sec, it seems to me – and it is nice to see honestly the entirety of the crypto space rallying together at this point – and so i i mean i put out a tweet too, and i I just i noted im not going to highlight in this video it doesnt matter, but i basically was just saying: hey uh, love to see this bringing the fight to the sec instead of the other way around, because normally its the other way around the sec suing Participants within the crypto space so lets get into some of the nuts and bolts here. First, just as a quick reminder, im not going to read this article, but headline does say say it all right. This is from march 31st of this year. So again, we knew that this was coming. Uh heres, a headline grace scale ceos threatened a lawsuit against the sec in case it rejects his firms. Spot bitcoin etf application may be loaded with merit, especially if feds are withholding permission out of fear, and so it does seem that case uh or could well thats what a lot of people are theorizing.
I have a different theory, i mean maybe its partly out of fear. Even hester purses speculated that, so there could be some merit to that. There really could that the uh, the people at the sec case something goes wrong. They dont they dont want to be there. Next, they get slit: okay, okay, okay, but let me tell you this uh theres theres, no shortage of rumors, of real reason being that uh theres, a different firm that uh thats been talked about more morally theres, a different firm that the sec wants to improve and Has to do with backroom deals and who knows who, and that would be uh. The largest fund on the entire planet, which is blackrock, which has trillions upon trillions and trillions of dollars of assets under management and whats whats been coming out here, is that the expectation is that since blackrock, theyre theyre the ones that know everybody at the top and At the sec upper echelons of uh government agencies within the united states theyre, the ones that would ultimately get approved so dont be surprised to see. If thats the case now mind you, they havent even filed um. To my to my knowledge, they havent even filed a bitcoin spot etf, but uh they have filed. This is unrelated. You know five or six months ago. I think they filed a blockchain etf, but thats completely separate its. What you need to understand moving forward here, is that a a spot, bitcoin etf, allows people uh in particular, theyll be interested if theyre not invested in crypto currently to get exposure to the crypto asset class.
So if theres a grayscale spot, bitcoin etf – that if say it had been approved, then grayscale could move to have their fund listed on, for instance, new york, stock exchange or nasdaq, and so then youd have the same protections that youd have under um under the sec. For any uh, any security that youd purchase on those on those centralized exchanges and its important for bitcoin, specifically because the the the bitcoin spot etf would be backed by actual bitcoin. So it impacts, supply and demand, whereas with futures markets, because you know bitcoin features. Those got approved at the end of 2017. theyve been around a long time, uh that does not impact the actual supply and demand. Now, indirectly, you could argue it could get people interested or disinterested in theory in the crypto space. So, in that sense, okay, fine, but it doesnt directly impact the supply and demand and of course, if, if there is a fund like grayscale, buying more bitcoin and that theres less available to purchase ultimately and more people are purchasing into this, this spot bitcoin etf, well, Thats still a net plus for the entire crypto space, and if youre wondering why why wouldnt people just buy crypto outright, look people people are set in their ways. People generally speaking, dont necessarily like change. Dont do well of change. So if youve already got your situation set up and you can purchase all the stocks in the world that you want on nasdaq and the new york stock exchange and youre aware of crypto peripherally but thats about it.
If you now see oh theres, this new thing i can buy and it would give me you know, access to this other asset class and i dont have to sign up for another exchange. I dont have to find out what coinbase is or anything else well thats. Why thats exactly the reason why and so now heres the latest headline from tonight from cointelegraph breaking grayscale launches legal challenge to bitcoin spot etf rejection – and this happens so fast youre gon na – be amazed by the turnaround here and it shows the gusto with which uh Grayscale is really moving forward. Grayscale investments has launched a legal challenge against the securities and exchange commission after being denied its application to convert its grayscale, bitcoin trust or gbtc for short into a spot based bitcoin exchange traded fund on june 29th. It announced that its senior legal strategist, former u.s solicitor general donald b verrilli jr, had filed a petition for review with the united states court of appeals for the district of columbia circuit vareli stated that the latest decision shows that the sec is acting quote arbitrarily and Capriciously, by failing to apply consistent treatment to similar investment vehicles, end quote and will be pursuing a legal challenge based on the secs alleged violation of the administrative procedure. Act and securities exchange act, a grayscale investments which has 12.92 billion dollars of assets under management in its gbtc have been waiting on a decision from the sec to convert its flagship, bitcoin trust into a spot based etf since filing its application to the regulator.
On october 19, 2021, according to a filing from the securities regulator on june 29th, the application was disapproved quote to protect investors and the public interest, because the proposal failed to demonstrate how it is designed to prevent fraudulent and manipulative acts and practices. End quote so isnt that something we dont know about this whole bitcoin thing i mean, of course, gary ginzer says its a commodity. You have a short bitcoin etf right, youve got youve got bitcoin futures, but we cant have a spot bitcoin etf. Does it seem a little peculiar to you? Peace continues. The decision came out a full week before the july 6 deadline and came on the same day as a similar rejection of bitwises bitcoin exchange traded product michael sudden, shane grayscales, ceo in a statement on wednesday said they were deeply disappointed and vehemently disagreed with the secs Decision to deny their application heres a quote. We will continue to leverage the full resources of the firm to advocate for our investors in the equitable regulatory treatment of bitcoin investment vehicles. Peace continues addressing his 19 400 twitter followers. James seifert, an etf analyst at bloomberg. Intelligence said, while the lawsuit has been filed, a court ruling on the matter is not expected until third quarter 2023 to first quarter 2024, meaning that we may not see the gbtc going forward anytime soon. So, although the wheels officially got moving on this today from a legal perspective, this might not have finality from a legal perspective for a good year and a half or so welcome to the world of what it is to be an xrp holder.
The to that i say that to the rest of the world of crypto, not nxrp, come join. The party right take on the sec with us im, just saying um, and then there is this from attorney john deaton and and actually funny enough. He um he tweeted. This out, like this first week, i think it was lets just check the time they got. Yeah 10 minutes before michael sunshine, ceo of grayscale lets put up the tweet, which is now on your screen. We filed a lawsuit against the sec 10 minutes before hes tweeted, that which was the first uh notification that that had indeed been the case attorney john deaton uh was sharing a story about this, the the greyskull bitcoin spot etf being denied and he tweeted the following. He said gary ginzer just admitted that bitcoin is a commodity, but he wont allow for a spot, bitcoin etf. He allows a bitcoin futures, etf and a bitcoin short etf for hedge funds, professional traders and big wall street bankers, but the average joe cant participate utterly shameful and then in a separate tweet, just five minutes after that he wrote he tagged. Michael sunshine said: i hope you file suit tomorrow morning. Oh, he did better than that. As attorney john deaton, then noted just a little bit after that, he said uh. He he retweeted the tweet from sensing which he said: hey filed, lawsuit against the sec and attorney deaton said thats.
What im talking about? I just tweeted. I hope you file tomorrow morning and you do even better awesome now worth noting here its not like. They just got the news and they started typing up this lawsuit today. No, in fact, the actual lawsuit is 92 pages, so they had this thing ready to go in full anticipation that the sec would not do what is right and then they probably modified any little thing. Last minute, based on the specifics of what the sec wrote today in their denial and then bam sent it off. So i wont pretend to have read this. This thing, its 92 pages, this thing just broke, but we do know the gist of what is is uh. Is in here right, um, and i want to give credit and a shout out to xrp community member and attorney james feilin for sharing that document less than two hours after the news broke uh. He already had the 92 document 92 page document available to view in his dropbox. He shared the link on his twitter account, so that was cool. I also want to share this from perrian boring, who is the founder of the digital chamber of commerce who, again, although they havent acted yet they promised that theyre going too soon at some point in the coming months, theyre going to file an amicus brief in the Sec versus ripple case and from what she said publicly, it does seem like the digital chamber of commerce, is going to be on the side of xrp holders, not on the side of ripple and not on the side of of the sec.
Just like john deepness john deaton, its not that hes and hes not against ripple but thats, immaterial to what hes doing right now, hes on the side of xrp holders, thats thats, johns position and thats the appropriate position, if youre filing an amicus brief anyway. Heres. What perry ann had to say tonight, the sec rejected the bitwise, invest, bitcoin, etp trust and the conversion of the grayscale bitcoin trust to a spot, bitcoin etf. This is extremely disappointing. The continued pattern of a denial can no longer be justified in light of the secs approval of a futures in spot bitcoin etf product. The scc has been provided a significant amount of data, demonstrating that a substantial and regulated market surveillance framework has developed around bitcoin trading. Over the past few years, exchange traded funds are perhaps the most impactful and innovative investment product introduced over the past 30 years and the fact the sec has denied every application filed for a spot. Bitcoin etf since 2013 baffles me at least 16 issuers, including some of the largest and most respected names in the asset management industry, have worked with united states stock exchanges to file spot bitcoin etf applications with the sec to date all have been denied some multiple times. Its estimated that 16 percent of americans own cryptocurrency today a spot bitcoin etf, would provide us investors the ability to invest in bitcoin under the protections of the united states securities laws, while the while the sec continues to stonewall approval of the important product this important product.
Many other highly regulated jurisdictions such as canada and australia, have approved a spot bitcoin etf products for for retail investors, leaving united states investors at a big disadvantage. So there you go thats, then it brings this full circle back to the speculation like whats going on here. Is it being denied because theyre waiting for blackrock to get their ducks in a row so that they can go ahead and you know file for their bitcoin spot bitcoin etf, you know: are they going to have a different bitcoin product? First? Are they going to have something like uh? You know a trusts, you know maybe maybe create a trust and then convert that to a spot is there? Are they gon na file? The should convert that, like race, killed it into a spot, uh a spot, bitcoin etf, um, or is it really just that these people, these asshats at the top of the sec, really are just that afraid to approve anything uh having to do with this? And if so, if so, they need to get the hell out of their positions because theyre harming investors, i mean to do that to save their own rear side, its just despicable if thats, indeed the case and all we can do – is speculate on that front it. Whatever the rationales, whatever the real reasons, are theyre unacceptable and you you and you can say that pretty confidently understanding. Even now, i argue that in the general sense, crypto big scale like cryptos and its nascency, it is sufficiently mature to understand the crypto asset class.
Is here to stay theres, a sufficient understanding of how bitcoin operates, theres a reason that sec has an approved, um other aspects of crypto adoption theres. So you know again: theres the bitcoin futures, etf, theres uh. You know the now the short one i mean theres theres. No shortage of an understanding of all this and other corners of the world, as perrian pointed out here, they have approved their own spot, bitcoin etfs. But why not here in the united states, then it just doesnt make any sense, and so, like i said when i started the video its just super good, to see its super satisfying to see that the fight is being brought to those asshat pricks at the sec. Im, not a financial advisor, you should not buy or sell anything because of anything that i say are right.