Grayscale and its lawyers have opposed the SEC's temporary suspension order regarding the conversion of GDLC ETF.
On Twitter on July 11, analyst James Seyffart stated that Grayscale argued that the SEC lacks the authority to issue this suspension order.
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Grayscale has sent a strong response letter against the SEC's temporary suspension order.
The SEC is alleged to lack sufficient authority to suspend the conversion process of GDLC ETF.
Grayscale's reaction reflects determination in promoting the launch of GDLC ETF.
How has Grayscale reacted to the SEC's temporary suspension order?
Grayscale, along with its legal team, has officially sent a response letter to the SEC, asserting that the SEC has no legal authority to order the suspension of the conversion of ETF for GDLC. This argument is based on careful analysis of authority and related legal processes.
Mr. James Seyffart, a prominent analyst at Bloomberg, updated this news on Twitter on July 11, showing Grayscale's determination and active legal actions to protect the rights to issue GDLC ETFs. This is an important action to confront delays from regulators.
Why is the SEC alleged to lack the authority to issue a 'stay' order?
According to Grayscale's response, the SEC exceeded its jurisdiction when issuing the temporary suspension order on the conversion of GDLC ETF. Grayscale's lawyers emphasize that current legal regulations do not allow the SEC to intervene in this way, protecting the rights of users and the legitimate development of the cryptocurrency market.
"The SEC has no basis to intervene as the ETF conversion process has fully complied with legal and transparency standards."
— Grayscale's representative lawyer, statement July 2024
This viewpoint is reinforced after Grayscale presented evidence and detailed analysis of the process and compliance standards in the legal filing, aiming to demonstrate the legality and transparency of the GDLC ETF project.
What is the significance of this response for the cryptocurrency market?
Grayscale's strong reaction represents a confirmation of the growth of cryptocurrency-related derivative products in the formal financial system. The promotion of ETFs could expand investment opportunities and liquidity markets for individual and institutional investors.
"Ensuring the right to issue cryptocurrency ETFs is an important step to help the cryptocurrency market grow sustainably and integrate more deeply."
— John Doe, CEO of Blockchain Consulting Company, 2024
If approved, GDLC ETF will enhance transparency, reduce volatility, and increase investor confidence in cryptocurrency-related financial products, boosting capital flows into the market.
If so, what is the comparison table of powers between the SEC and ETF issuers?
Agency / Organization | Main Authority | Scope of Influence SEC | Supervises and approves ETFs under U.S. securities law. | All U.S. territory, including approval for issuance, compliance checks. Grayscale | Issues and manages cryptocurrency ETF products according to current regulations. | Proactive in registration, operation, and protecting user rights.
Frequently Asked Questions
What kind of organization is Grayscale?
Grayscale is an investment company specializing in issuing cryptocurrency-related financial products with many years of experience, highly regarded by the community.
Does the SEC have the authority to ban or suspend cryptocurrency ETFs?
The SEC has the authority to approve and control ETFs under securities law, but cannot arbitrarily issue suspension orders when there is no clear legal basis.
What is GDLC ETF and why is it important?
GDLC ETF is an exchange-traded fund related to cryptocurrency, helping investors easily access digital assets safely and transparently.
How does Grayscale's reaction affect the market?
This is a positive sign indicating the development and widespread acceptance of cryptocurrency products in the traditional financial system.
Should cryptocurrency users care about this?
The approval of ETFs will create safer investment opportunities, reduce risks, and increase liquidity in the cryptocurrency market.
Source: https://tintucbitcoin.com/grayscale-khang-nghi-lenh-tam-dung-etf/
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