A major legal battle between digital asset giant Grayscale Investments and the US Securities and Exchange Commission (SEC) over the rejected application to convert the Grayscale Bitcoin Trust (GBTC), the world’s largest BTC fund, to a spot exchange-trading fund (ETF) might last even two years or longer.
“We can’t be certain about timing, but based on how long federal litigation tends to take – including briefings, oral arguments, and a final court decision – it can typically take anywhere from twelve months to two years, but could be shorter or longer,” Craig Salm, Grayscale’s Chief Legal Officer (CLO), said in a Q&A published by the company.
The litigation has already started as the company said it filed the Petition for Review within an hour of receiving the SEC’s decision.
Also, according to Salm, if Grayscale loses at the appellate level, they would have two options:
- Seek an “en banc” hearing, where instead of the three randomly selected judges making a decision about our case, the entire group of judges in the D.C. Circuit would weigh in to make a final decision.
- or appeal to the US Supreme Court.
“If either Grayscale or the SEC lose, either party could appeal the decision to the Supreme Court. If the Supreme Court decided to take the case on, we would proceed with a similar litigation process as in the appellate level: petition for review, briefings, oral arguments, and final decision,” the CLO explained.
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