Grayscale Investments, the world's largest digital currency asset management firm, said on June 29 that its Senior Legal Strategist, Donald B. Verrilli, Jr., had petitioned the United States Court of Appeals for the District of Columbia Circuit for review.
According to a GlobeNewswire source, the petition for review specifically challenges the Securities and Exchange Commission's (SEC) decision to deny the conversion of Grayscale Bitcoin Trust (BTC) (OTCQX: GBTC) to a spot Bitcoin ETF.
Grayscale CEO Michael Sonnenshein commented on the matter:
“Grayscale supports and believes in the SEC’s mandate to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation—and we are deeply disappointed by and vehemently disagree with the SEC’s decision to continue to deny spot Bitcoin ETFs from coming to the U.S. market.”
Meanwhile, Grayscale's Senior Legal Strategist and former U.S. Solicitor General Donal Grayscale'sli, Jr. stated that as Grayscale and the team at Davis Polk & Wardwell have outlined, the SEC is failing to apply consistent treatment to similar investment vehicles.
"Therefore acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934," says Grayscale'sli.
Grayscale has been working since 2013 to create the GBTC, which seeks to be the world's largest Bitcoin investment vehicle.
The corporation voluntarily submitted registration statements to the SEC, increasing the amount of information available to investors and subjecting these products to increased SEC scrutiny.