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The crypto community received the decision it had been hoping for when the District of Columbia Circuit Court of Appeals ruled on Grayscale Investments\u2019 Bitcoin\u00a0spot ETF application. The United States Securities and Exchange Commission (SEC) rejection of the application was overturned.<\/p>\n
The decision was \u201ca slaughterfest of the SEC arguments,\u201d Cinneamhain Ventures founder Adam Cochran said<\/a>\u00a0on X (formerly Twitter). \u201cThis changes everything. Time to pay attention again,\u201d influencer Miles Deutscher chimed<\/a> in.<\/p>\n The initial enthusiasm was tempered by the understanding that the decision was limited in its scope and the SEC has options for its next steps. Grayscale released a statement in which chief legal officer Craig Salm said:<\/p>\n \u201cWe appreciate that the D.C. Circuit\u2019s opinion acknowledged that this case presented a straight-forward question about equal treatment under the law.\u201d<\/p><\/blockquote>\n This more sober evaluation gained traction as analysts considered the SEC\u2019s resourcefulness further.<\/p>\n \u201cGary Gensler and team are discussing how this can [be] made into a political win. […] Will Gensler graciously accept defeat or talk about how these 3 judges got it wrong?\u201d crypto lawyer John Deaton asked<\/a>.\u00a0<\/p>\n Related: BTC price jumps to 2-week highs on Grayscale vs. SEC Bitcoin ETF win<\/em><\/strong><\/p>\n Blockchain Association chief policy officer Jake Chervinsky acknowledged the possibility that the SEC would accept defeat, calling that strategy \u201ca face-saving narrative\u201d and \u201cthe right move\u201d after \u201ca huge embarrassment.\u201d <\/p>\n 1\/ Grayscale’s victory over the SEC is *massive.*<\/p>\n It’s very rare for a federal circuit court to find that an agency has violated the APA by acting arbitrarily and capriciously.<\/p>\n The DC Circuit just delivered a huge embarrassment for the SEC.<\/p>\n But the ETF isn’t approved yet <\/p>\n \u2014 Jake Chervinsky (@jchervinsky) August 29, 2023<\/a><\/p><\/blockquote>\n Others were less optimistic. \u201cSo far, every time they lose in court they just shamelessly say the judge got it wrong and pursue more shenanigans,\u201d Delphi Labs general counsel Gabriel Shapiro said<\/a>.\u00a0<\/p>\n if a court finds that the government acted arbitrarily and capriciously it should have to pay the other side’s legal fees — if not, there’s no consequence for bad government behavior.<\/p>\n \u2014 Palley (@stephendpalley) August 29, 2023<\/a><\/p><\/blockquote>\n Shenanigans can be costly. \u201cFor many companies, fighting back is incredibly expensive (you will win, but you\u2019ll be bankrupt when you do) or you\u2019re a financial conglomerate where the SEC can fuck up the rest of your business in the meantime. Gangster behavior,\u201d Zero Knowledge Consulting managing partner Austin Campbell said<\/a>.<\/p>\n Live view of Garbitrary Gensler’s office reading the court order that absolutely demolishes the SEC’s efforts to defraud retail investors: pic.twitter.com\/TfU1l5CLeV<\/a><\/p>\n \u2014 Austin Campbell (@CampbellJAustin) August 29, 2023<\/a><\/p><\/blockquote>\n Crypto lawyer Jeremy Hogan reminded the community to beware of what it prays for. \u201cEveryone, welcome \u2018Big Money\u2019 to the table. For better, or worse,\u201d he said<\/a> of the Grayscale win.\u00a0<\/p>\n Magazine: SEC seeks appeal over Ripple, crypto prices plunge and EU debuts Bitcoin ETF: Hodler\u2019s Digest, Aug. 13-19<\/em><\/strong><\/p>\n <\/div>\n\n
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