The long-term ramifications of Grayscale’s legal victory over the SEC should not be understated, according to former CFTC official and Willkie Farr & Gallagher LLP attorney Mike Selig, who specialises in cryptocurrencies and finance. Even the Binance (BNB) and Coinbase exchanges may profit from it, not to mention all ETF applicants.
Grayscale case will have “ripple effect” for crypto, lawyer says
If the U.S. Securities and Exchange Commission refused to approve proposals for Ethereum futures exchange-traded funds, it would be subject to additional legal repercussions, similar to those it battled in the Graysale case. Mike Selig, a renowned crypto attorney, made this prediction yesterday, September 29, 2023, on his X account.
https://x.com/MikeSeligEsq/status/1707775673639616851?s=20
Because of this, Grayscale’s legal victory may have a significant “ripple effect” on many participants in the cryptocurrency markets. He said, “This is especially important in the context of the Ethereum security status argument.
The SEC effectively accepts that Ether, the second-largest digital asset and native cryptocurrency of the Ethereum (ETH) network, is not a security by authorising Ethereum futures ETF.
The outcome of the Grayscale v. SEC lawsuit in the United States Court will have an impact on the development of the Ethereum ETF as well as the legal sagas involving Coinbase and Binance (BNB).
A U.S. asset management powerhouse named Grayscale defeated the U.S. SEC in August 2023. The judge found that despite rejecting Grayscale’s spot BTC ETF offering, the SEC had not given an adequate justification for authorising futures products.
New generation of Ethereum futures ETFs kicks off
The SEC also extended the deadlines for approving all spot ETFs for Bitcoin and Ethereum at the same time. Bitwise, Grayscale, 21Shares, Ark, Valkyrie, WisdomTree, and other asset managers are now anticipating the results of the watchdog.
New exchange-traded funds (ETFs) based on Bitcoin (BTC) and Ethereum (ETH) futures are being introduced by the companies in the meantime. Grayscale and Bitwise have filed for the launching of futures-based ETF products.
As previously reported by U.Today, a new wave of investment goods may launch as soon as Monday, Oct. 2, 2023.
