After losing to Grayscale, SEC’s options include potentially reversing Bitcoin futures ETF approvals amid suspicions of political motives.
Key Points
- SEC faces choices after losing Grayscale case, including potentially reversing Bitcoin futures ETF approvals.
- Lawyer Joe Carlasare suggests 20% chance of SEC rescinding futures ETF approvals post-court ruling.
- Concerns arise about SEC Chairman Gensler’s motives, with suspicion of reversing futures ETF approvals for political reasons.
- Patent lawyer Sandy Seth sees over 50% chance of SEC reversing futures ETF approvals, despite agency’s previous findings.
After losing a court case against Grayscale, the Securities and Exchange Commission (SEC) is now confronted with a difficult choice regarding the influx of Bitcoin spot ETF applications it has received.
🇺🇸 GRAYSCALE CEO: 3 judges unanimously voted and agreed with Grayscale against the SEC. Huge win! pic.twitter.com/nPtN2cL5II
— Bitcoin Archive (@BTC_Archive) August 31, 2023
Potential Reversal of Futures ETFs
Although it may seem unlikely, lawyer Joe Carlasare, who supports Bitcoin, believes there is a possibility that the SEC may reverse its previous approval of Bitcoin futures ETFs.
Carlasare mentioned in a tweet that there is a 20% chance of the SEC responding to the recent court ruling by rescinding prior orders approving the futures ETFs.
This move would align with remarks made by an SEC lawyer during the Grayscale case oral arguments in March.
SEC’s Motives
John Deaton, the lawyer representing XRP investors in the SEC’s lawsuit against Ripple, expressed his suspicion that SEC Chairman Gary Gensler may choose to reverse the approval of futures ETFs.
Deaton believes that Gensler is more concerned about politics than market reactions.
There have been growing concerns among business leaders and members of Congress that the SEC has an agenda to suppress the crypto industry in the United States.
House Financial Services Committee Chairman Patrick McHenry has blamed the Democrat-controlled White House for impeding regulatory progress and hindering the establishment of clear rules for the industry.
Concluding Thoughts
Patent lawyer Sandy Seth, who specializes in crypto, gives a “more than 50%” chance of the SEC rescinding futures ETF approvals, despite the agency’s questionable behavior.
Seth asserts that such a reversal would contradict the SEC’s previous findings that Bitcoin markets are stable enough to support futures ETFs, indicating that they are also stable enough to support a spot ETF.
Aside from potentially rescinding futures ETF approvals, the SEC has other options available.
They can appeal the court’s ruling in the Grayscale case or reject Grayscale’s ETF application based on another reason. Alternatively, they may choose to finally allow a spot ETF to be approved.
