Grayscale Rebuttal: SEC Hold on Large Cap Fund ETF Conversion Challenged

Grayscale Investments is challenging the U.S. Securities and Exchange Commission's (SEC) decision to halt the conversion of its Digital Large Cap Fund (GLDC) into an ETF. According to Bloomberg analyst James Seyffart, Grayscale has submitted a formal rebuttal, questioning the SEC's authority to issue the suspension order. The GLDC includes a basket of prominent cryptocurrencies like BTC, ETH, XRP, SOL, and ADA. Grayscale's argument centers on the assertion that the SEC overstepped its bounds in pausing the ETF conversion application. This move underscores the ongoing tension between cryptocurrency firms seeking broader market access through ETFs and regulatory scrutiny. The outcome of this challenge could set a precedent for future ETF applications involving diversified crypto portfolios. ```