After the U.S. Securities and Exchange Commission’s (SEC) grilling on its decision on the Grayscale spot Bitcoin ETF application, speculation is now on that the SEC insiders are starting to lose grip on the lawsuit. After the SEC representatives faced tough time in the initial arguments on March 7, 2023, the Grayscale Bitcoin Trust $GBTC share price rallied. The judges questioned the SEC’s conclusions in the Grayscale case, asking the regulatory agency as to what the company has to do to get the application approved.

The Grayscale management had long been arguing that the SEC made an arbitrary decision, given that it gave a green light to Bitcoin futures contracts. In the initial arguments made in front of the District of Columbia Court of Appeals, the company maintained that the agency was unfair in its case.

In what could come as a refreshing update for the crypto market, Andrew, a Twitter user, claimed insider sources in the SEC of saying Grayscale getting a win in the ongoing lawsuit. He said that either the SEC would allow spot Bitcoin ETF of disallow Bitcoin futures ETFs. Reacting to this, John Deaton, the attorney representing XRP token holders in the Ripple Vs SEC lawsuit, said the courts are the only way to win as the Congress is not acting towards providing regulatory clarity.

(By Anvesh Reddy)