{"id":41856,"date":"2022-06-08T12:25:18","date_gmt":"2022-06-08T12:25:18","guid":{"rendered":"https:\/\/harchi90.com\/grayscale-hires-former-solicitor-general-to-help-force-bitcoin-etf-approval\/"},"modified":"2022-06-08T12:25:18","modified_gmt":"2022-06-08T12:25:18","slug":"grayscale-hires-former-solicitor-general-to-help-force-bitcoin-etf-approval","status":"publish","type":"post","link":"https:\/\/harchi90.com\/grayscale-hires-former-solicitor-general-to-help-force-bitcoin-etf-approval\/","title":{"rendered":"Grayscale hires former Solicitor General to help force Bitcoin ETF approval"},"content":{"rendered":"
Grayscale Investments has hired a former US Solicitor General in preparation for a potential legal spat with the US Securities and Exchange Commission (SEC), should the regulator reject its application for a spot Bitcoin (BTC) exchange-traded fund (ETF) on July 6 .<\/p>\n
The company has been waiting on a decision from the SEC to convert its flagship $ 19.8 billion Grayscale Bitcoin Trust (GBTC) into a spot-based ETF, since filing its application to the regulator on October 19, 2021. <\/p>\n
The SEC has pushed back its decision on multiple occasions, once in December and again in February. A final decision on the application is expected on July 6. <\/p>\n
Jake Chervinsky, head of policy at the crypto advocacy group Blockchain Association said adding such firepower to Grayscale’s legal team was a \u201cstrong move\u201d, and that the SEC would have little chance of “surviving a legal challenge” if it decided to knock back approval now. <\/p>\n
\nStrong move. @Grayscale<\/a> means business.<\/p>\n
The SEC’s deadline to approve or deny the application to convert GBTC to an ETF is July 6. No doubt, it should be approved. I don’t see how the SEC survives a legal challenge if not, especially one led by Don Verrilli.<\/p>\n
Mark your calendar. https:\/\/t.co\/ZbZ7oTXhHR<\/p>\n
– Jake Chervinsky (@jchervinsky) June 7, 2022<\/a><\/p><\/blockquote>\n
In March, Grayscale CEO Michael Sonnenshein told Bloomberg that his firm would consider a lawsuit under the Administrative Procedure Act (APA) should the application for its Bitcoin Spot ETF be denied by the financial regulator.<\/p>\n
He has been a vocal critic of the regulator, which approved crypto futures ETF products in October 2021 but is yet to do so for a spot ETF equivalent. <\/p>\n
Donald B. Verrilli Jr., the new hire, is a former US Solicitor General who served from 2011 to 2016 under Barack Obama’s administration. He is currently a partner in Californian law firm Munger, Tolles & Olson, and founded its Washington DC Office in 2016. <\/p>\n
On Twitter, Grayscale explained that the lawyer has been involved in more than 50 cases before the US Supreme Court, including several that dealt directly with Administrative Procedure Act (APA) violations.<\/p>\n
He will serve as a senior legal strategist, working alongside its attorneys at Davis Polk & Wardwell LLP and its in-house counsel, including Craig Salm, who serves as chief legal officer. <\/p>\n
\nDon’s legal acumen is unmatched. There’s no better advocate we could have to join our legal strategy team with @DavisPolkReg<\/a> as we continue advocating to convert $ GBTC<\/a> to a spot #Bitcoin<\/a> ETF. https:\/\/t.co\/ZruXc1aiQ6<\/p>\n
– Craig Salm (@CraigSalm) June 7, 2022<\/a><\/p><\/blockquote>\n
Grayscale described Verrilli as one of the nation’s most experienced attorneys with “a deep understanding of legal theory, administrative procedure, and the practical matters of working with the judiciary branch.”<\/p>\n
“We are thrilled that he is joining our team as we work towards a positive resolution for investors and the general public.”<\/p>\n
\nAs we enter the final month before a response is due on our application to convert $ GBTC<\/a> to an ETF, we have retained Donald B. Verrilli, Jr., former Solicitor General of the United States, as additional legal counsel. A short on why:<\/p>\n