Grayscale hires a former lawyer to help enforce the approval of the Bitcoin ETF

Grayscale hires a former lawyer to help enforce the approval of the Bitcoin ETF – Mail Bonus

Grayscale Investments has hired a former US lawyer to prepare for a possible legal battle with the US Securities and Exchange Commission (SEC), if the regulator rejects its application for a Local Bitcoin (BTC) Stock Exchange Fund (ETF) on July 6. .

The company has been awaiting a decision from the SEC to convert its $ 19.8 billion flagship Grayscale Bitcoin Trust (GBTC) into a local ETF, since submitting its application to regulators on October 19, 2021.

The SEC has repeatedly pushed back its decision, once in December and again in February. The final decision on the application is expected on July 6.

Jake Chervinsky, chief policy officer at the blockchain group Blockchain Association, said it was a “strong move” to add such firepower to Grayscale’s legal team and that the SEC would have little chance of “surviving a legal challenge” if it decided to back down. now.

In March, Michael Sonnenshein, CEO of Grayscale, told Bloomberg that his company would consider a lawsuit under the Administrative Procedure Code (APA) if the Bitcoin Spot ETF application was rejected by the Financial Supervisory Authority.

He has been a fierce critic of the regulator, which approved crypto futures ETFs in October 2021 but has yet to do so for local ETF equivalents.

The newly hired Donald B. Verrilli Jr. is a former United States lawyer who worked from 2011 to 2016 under Barack Obama. He is now a partner in the California law firm Munger, Tolles & Olson and founded its Washington DC office in 2016.

On Twitter, Grayscale explained that the lawyer has been involved in more than 50 cases before the Supreme Court of the United States, including several that directly concerned violations of administrative law (APA).

He will work as a senior lawyer and work alongside its lawyers at Davis Polk & Wardwell LLP and its in-house counsel, including Craig Salm, who works as a senior lawyer.

Grayscale described Verrilli as one of the nation’s most experienced lawyers with a “deep understanding of jurisprudence, administrative processes and practical aspects of working with the judiciary.

“We are pleased that he is joining our team as we work towards a positive solution for investors and the public.

Meanwhile, Citadel Securities, a market maker that could provide liquidity for cryptocurrencies such as the one Grayscale suggested on Tuesday, said it was open to supporting cryptocurrencies but would not do so without the approval of regulators.

“We will be ready if and when these products are approved, but we are taking a considered approach,” Kelly Brennan, head of Citadel ETF, told Bloomberg.

Market makers are key providers of liquidity in ETF ecosystems as they ensure stable and efficient trading in ETFs.

Connected: Why the World Needs a Bitcoin ETF in the US: 21Shares CEO Explains

Elsewhere in the world, cryptocurrency-related ETFs have become increasingly popular, with total assets of investors in cryptocurrencies and stock exchanges (ETPs) reaching $ 16.28 billion worldwide at the end of the first quarter of 2022, according to ETFGI research firm ETFGI.

In February 2021, Canada premiered its first Bitcoin ETF, the Purpose Bitcoin ETF, and became one of the first countries in the world to adopt the Bitcoin ETF.

On May 12, Australia launched its first cryptocurrencies fund, including Bitcoin ETFs from Cosmos Asset Management, as well as BTC and Ether (ETH) spot ETFs from 21Shares. Another two encrypted ETFs were launched on Monday, June 6th.

In May, Grayscale began trading in its first European ETF, called the Grayscale Future of Finance UCITS ETF, which is listed on the London Stock Exchange, Borsa Italiana and the Deutsche Börse electronic trading platform Xetra.