US Securities and Exchange Commission Faces Backlash for Rejecting Bitcoin ETFs

The Securities and Exchange Commission of the United States has been under pressure from cryptocurrency enthusiasts and proponents to delay and reject ETF-related applications from the country. The commission recently rejected another spot, Bitcoin ETF applicant Ark Investment which has been under consideration since last year.

The commission also set up a public dialogue platform to collect more data on the matter. However, SEC has proceeded to stick to its strict conditions when it comes to Bitcoin Spot ETF applications. Shortly after rejecting the spot ETF application by Ark Invest, SEC has decided to greenlit a future ETF application by Teucrium. The move has once again sparked outrage from the corporate sector working on crypto-related innovations.

GrayScale CEO also Slams SEC

Michael Sonnenshein is the CEO of Grayscale, one of the largest Bitcoin and other cryptocurrency trust funds in the world. Slamming the move of the SEC to reject yet another spot Bitcoin ETF and accept future ETF, he recently claimed that SEC weakened its position by making such a decision. He mentioned in a recent tweet that SEC officials used the discrepancies between the 40 Act and 33 Act to justify their opposition to the spot Bitcoin ETF.

According to him, the regulatory agency should not have any issued with a spot ETF application if it is approving futures ETFs. He further explained that the comparison of the ETF applications of Ark Invest, 21Shares, and Teucrium could generate enough legal pretexts to challenge SEC in a court of law. Meanwhile, Grayscale is already planning to seek legal assistance in case of SEC disproval.

James Seyffart is the business intelligence analyst at Bloomberg, who recently seconded the opinion of Grayscale CEO on his offensive stance towards SEC. It is worth noting that Grayscale has been facing massive pressure from its shareholders to turn its GBTC shares into a Bitcoin ETF since last year. Seyffart projected in a recent tweet about the possibility of a GBTC ETF application rejection.

He tweeted that July will make it clear whether SEC is going to face off against Grayscale for APA violations in court this year. editor and journalist Sumit Roy recently told the media that any possibility of Bitcoin spot ETF approval in the country is still a remote prospect despite the ruling on Teucrium ETF turnout.

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