SEC Delivers Crushing Blow to Graysacle by Imposing Filecoin Security Label

SEC Delivers Crushing Blow to Graysacle by Imposing Filecoin Security Label

Altcoin news, News

The United States Securities and Exchange Commission (SEC) has demanded that Grayscale Investments withdraw its request for the establishment of a Filecoin Trust, citing concerns over its classification as a potential security.

Grayscale had submitted an application seeking approval for an upgraded Filecoin Trust offering that would establish it as a publicly reporting firm.

If approved, the company would have been obligated to disclose quarterly and annual reports publicly. However, the SEC’s comments appear to have put an end to that plan.

sec saul loeb getty scaled 1 jpeg
The headquarters of the US Securities and Exchange Commission (SEC) is seen in Washington, DC, January 28, 2021. – An epic battle is unfolding on Wall Street, with a cast of characters clashing over the fate of GameStop, a struggling chain of video game retail stores. Late January 27, 2021, the Securities and Exchange Commission said it was monitoring the activity. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)

A press release from Grayscale revealed that the company disagreed with the SEC’s assertion that Filecoin could be classified as a security, something that the SEC itself has been wrestling with for some time.

Grayscale is now left with the decision of whether to pursue alternative measures or accommodations for the registration of the Trust.

Compiled by Coinbold

Grayscale, SEC

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