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Grayscale would appeal lawsuit against SEC if court rejects case, CEO Michael Sonnenshein says

As the company awaits a court ruling on a June lawsuit against the SEC, CEO Michael Sonnenshein said he was prepared to appeal if the court backed the SEC's decision to reject the bitcoin ETF proposal.

January 25, 2023 / 11:18 AM IST

Crypto asset manager Grayscale Investments is gearing up for a prolonged legal fight with the U.S. Securities and Exchange Commission to create a spot bitcoin exchange-traded fund, the company's chief executive officer said.

As the company awaits a court ruling on a June lawsuit against the SEC, CEO Michael Sonnenshein said he was prepared to appeal if the court backed the SEC's decision to reject the bitcoin ETF proposal.

"The only option the SEC left us with was to turn around and say, you know what, this just isn't right," Sonnenshein said. Suing the regulator was one of the most important decisions he had made as CEO, and was "one that I did not, and we as a team, did not take lightly," he said.

The SEC rejected Grayscale's application to covert its flagship Grayscale Bitcoin Trust (GBTC) into an ETF in June, arguing that the proposal did not meet standards designed to prevent fraudulent practices and protect investors.