Grayscale Triumphs Over SEC: A Deep Dive into the Landmark Crypto Lawsuit

Celebrations echoed through the crypto corridors this week as Grayscale clinched victory in its lawsuit against the SEC concerning the application for its Bitcoin Spot ETF. Despite a 45-day review period hanging over their heads, many view this as a promising move forward.

While Grayscale basked in its victory, the SEC made waves in other areas by taking on an NFT initiative and imposing a hefty $6 million fine.

In the decentralized social media sphere, the hype around Friend.tech — a topic I previously discussed and pointed out community doubts — has taken a hit as daily transactions nosedive. More on this below.

Web3 Insights This Week

For the latest podcast episode, Jacquelyn had an informative session with Craig Salm, Chief Legal Officer at Grayscale Investments.

Grayscale, a trailblazer in digital asset investment, strives to offer innovative products and services, such as its eminent Grayscale Bitcoin Trust (GBTC), to both institutional and individual investors. Since its inception in 2014, Grayscale has grown into one of the largest managers of digital currency assets worldwide. At present, they own a staggering 3.4% of outstanding Bitcoin, a value running into the tens of billions, as per a recent legal document.

As stated earlier, the company was in the limelight this week as the D.C. Circuit Court of Appeals ruled in favor of Grayscale in its lawsuit against the U.S. Securities and Exchange Commission (SEC) on the Bitcoin ETF issue. This decision follows the SEC’s rejection in June 2022 of Grayscale’s proposal to morph its GBTC product into a Bitcoin Spot ETF.

We delved into how this ruling impacts Grayscale and its GBTC investment vehicle. We also discussed its potential implications on the broader crypto ecosystem and other firms, such as BlackRock and Fidelity, which have also applied for Bitcoin Spot ETFs.

Moreover, we explored the SEC’s contention over the difference between Bitcoin futures ETFs, which have received their seal of approval, and Bitcoin Spot ETFs, which remain unapproved.

Where the Money is Flowing

Here are some recent financial movements in the crypto world:

• FirstMate, an NFT-centric startup, secured $3.75 million in a financing round led by Dragonfly Capital.
• Raleon, a Web3 engagement platform, raised $3.8 million in seed funding.
• Coral Finance obtained $500,000 in capital from Momentum Capital.
• Ironmill, a Web3 infrastructure startup, raised $2.6 million in funding.
• Builder DAO raised $2 million in a round led by Sequoia China and Seven X Ventures.