Grayscale Investments, the renowned digital currency asset manager, has taken a bold step by filing a request with the U.S. Securities and Exchange Commission (SEC) to withdraw its application for a Filecoin (FIL) trust product.
In an intriguing turn of events, Grayscale maintains its position that FIL does not fall under the category of a security, despite the SEC’s earlier assertion that it indeed qualifies as one.
In a recent press release, Grayscale emphasized its commitment to providing investors with transparency and comprehensive risk disclosures.
The company voluntarily files Registration Statements on Form 10 with the SEC, a practice aimed at enhancing their product offerings and ensuring adherence to regulatory standards.
The initial Registration Statement for the Trust was submitted by Grayscale on April 14, 2023. However, on May 16, 2023, the SEC staff requested Grayscale to withdraw the Registration Statement, contending that FIL meets the definition of a security under federal securities laws.
In response, Grayscale submitted a detailed explanation on June 6, 2023, citing an analysis of relevant legal precedents, specifically the Howey case law, to support their belief that FIL should not be classified as a security.
Despite this, the SEC staff persisted in their request for Grayscale to seek withdrawal of the Registration Statement, highlighting their position in certain filings in federal district court.
Grayscale’s recent withdrawal request is a clear indication that the company remains steadfast in its stance that FIL should not be treated as a security.
The developments surrounding this matter are being closely monitored by market participants and industry experts, as the outcome could potentially have far-reaching implications for the broader digital currency landscape.
Grayscale, meanwhile, intends to continue reporting for the Trust in accordance with the Alternative Reporting Standards of the OTCQB.
Filecoin (FIL) Price Analysis
According to the latest data from CoinMarketcap, Filecoin is currently trading at $3.15, showcasing a modest downside ride of approximately 22.09% within the past 24 hours. The weekly chart displays a noteworthy decline of 35.96%, signifying a touch of market volatility.
Drawing attention to Filecoin’s trading volume, it has observed a notable increase of 291.02% to a staggering $297,841,238. The market capitalization has also experienced a decrease of 21.95%.
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