Michael Sonnenshein, the CEO of Grayscale, said his firm was very disappointed with the SEC’s decision to reject the Bitcoin ETF application. He said, however, that as an organization, they were ready to face the consequences of a rejection.
Grayscale’s Legal Battle Against SEC
Soon after the decision to reject the application was delivered on Wednesday, Grayscale dragged the SEC to the court. Attorneys representing Grayscale filed a petition at the District of Columbia Circuit challenging the SEC’s decision to deny the application.
“We of course disagree with the SEC’s decision. We laid out the arguments throughout the last couple of months leading up to this decision,” the CEO said speaking to CNBC on Thursday.
Sonnenshein further said the regulatory body was acting arbitrarily by not recognizing spot Bitcoin ETFs. They have to treat like-issues alike, he stated.
“The SEC is acting arbitrary and capricious by continuing to approve Bitcoin futures based ETFs while continuing to deny spot Bitcoin ETFs. When you look at the way regulators govern, they have to be treating like-issues alike.”
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In a statement after the decision was announced, Grayscale said it will continue advocate for investors and the equitable regulatory treatment of Bitcoin investment vehicles.
‘Discrimination Against Grayscale Bitcoin ETF’
The Grayscale CEO argued that the SEC was discriminating against his firm. This is an unbelievably missed opportunity on the part of the SEC, he added.
“In this case, they are discriminating against issuers like Grayscale who are trying to bring a product further into framework.”
Calling it a chance to bring into regulatory perimeter and give investors disclosure, he said it was a missed opportunity.
Sonnenshein said many investors continue to invest in Bitcoin despite the recent selloff.
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