The cryptocurrency community has been eagerly awaiting the verdict on Grayscale’s Spot Bitcoin ETF lawsuit against the United States Securities and Exchange Commission (SEC). However, the D.C. Circuit Court of Appeals has once again failed to make a decision, causing further delay and uncertainty for both Grayscale and the entire crypto industry.

The Third Delay

Grayscale’s Chief Legal Officer, Craig Salm, took to Twitter to reveal that the appeal court had not reached a decision on the lawsuit. This marks the third delay in the case, with previous expectations for a decision on August 15th and August 18th. It remains unclear when the court will finally provide its verdict, as legal experts had initially projected a decision to be made this month.

While some may speculate that the court is intentionally stalling the case, Salm’s tweet suggests otherwise. He emphasized that there were simply no rulings for that day, indicating that the delay was not deliberate.

Grayscale’s Lawsuit Against the SEC

The origins of Grayscale’s lawsuit against the SEC can be traced back to last year when the company attempted to convince the Commission to convert its $20 billion Grayscale Bitcoin Trust (GBTC) into a Spot Bitcoin ETF. However, the SEC rejected the proposal, prompting Grayscale to take legal action.

The crux of Grayscale’s argument is that Spot Bitcoin ETFs should be treated similarly to Bitcoin futures ETFs. In March, during the final oral argument, the company highlighted the SEC’s inconsistency in approving a Bitcoin futures ETF while denying a Spot Bitcoin ETF. Grayscale emphasized that both investment vehicles carry the same risk of fraud and manipulation and that the pricing of futures and spot bitcoin markets are highly correlated.

Grayscale believes that since the SEC considers the CME’s surveillance sharing agreement sufficient to protect against risks in the futures market, it should also deem it sufficient to approve Spot Bitcoin ETFs.

The Potential Game-Changer

Grayscale is not the only financial firm awaiting the SEC’s approval for a Spot Bitcoin ETF. Several others have filed applications, but the Commission has been reluctant to grant approval. However, if the court rules in favor of Grayscale, it could potentially force the SEC to finally approve a Spot Bitcoin ETF.

This decision would be a significant boost for the cryptocurrency industry, as it would open the doors for institutional investors to have direct access to crypto assets. Such accessibility could further drive the mass adoption of cryptocurrencies and solidify their position in the financial world.

The much-anticipated verdict on Grayscale’s Spot Bitcoin ETF lawsuit against the SEC has been delayed once again. The appeal court’s failure to reach a decision has left the crypto community in suspense, as they eagerly await the outcome. Grayscale’s argument for the approval of Spot Bitcoin ETFs rests on the inconsistency and correlation between futures and spot bitcoin markets. If the court rules in favor of Grayscale, it could potentially compel the SEC to approve a Spot Bitcoin ETF, paving the way for increased institutional investment and the widespread adoption of cryptocurrencies. However, until the court issues its final decision, the crypto industry will remain in a state of uncertainty.