By Larry Wright
Many financial enterprises have applied for approval of Bitcoin ETF with the SEC. However, thus far, none have been approved by the financial regulators. However, Grayscale, the largest holder of Bitcoin and one of the spots BTC ETF applicants, has decided to take the SEC to court for accountability on the matter.
During the court hearing, the presiding judge Neomi Rao maintained that Grayscale had presented enough proof that indicates a deliberate delay on the part of the SEC.
It is important to mention that lead counsel Don Verrilli was representing Grayscale in the proceedings and termed the delay by SEC in processing the application as an arbitrary action.
SEC Approves Crypto Futures but Rejects Crypto ETF Applications
During the proceedings, the Grayscale counsel Verrilli told the court that the Bitcoin trust wishes to be regulated. On the other hand, SEC defence attorney Emily Parise defended the position of the financial regulator by arguing a 99% lack of causation by drawing a comparison between spot and futures markets.
She argued that the onus or burden of proof lies with Grayscale, and the firm has not presented enough data to make a solid case against SEC.
Meanwhile, Judge Rao has issued the statement that SEC has thus far not provided sufficient evidence to repel the damages claim made by Grayscale, and SEC must also prove why proffered information by the crypto firm is relevant to the case.
Judge Rao has questioned the SEC officials about why they were unable to process the Bitcoin spot ETF application under the Tookrium Order despite issuing Bitcoin futures under the same tenet. SEC lawyer has retorted to the questions of the judge with comments like that the evidence is mixed and bi-directional sometimes and depends on the time duration of the execution.
Judge Rao also mentioned that under the Tookrium order, SEC could take action against any market manipulation and fraudulent practices in the futures market because they are regulated. She proceeded to question the SEC defence by exclaiming why the same rule cannot be extended to Bitcoin spot ETFs and asked her to share the logic behind the delay.
When the judge asked Praise if the SEC would approve the spot ETF application if the court did not agree with their stance and she answered by saying that she can’t answer that.