Regulatory Battle: Grayscale Challenged by SEC’s Designation of Filecoin as Security

Regulatory Battle: Grayscale Challenged by SEC’s Designation of Filecoin as Security

Grayscale Investments, the largest digital currency asset manager by assets under management, made an announcement on May 17 regarding a comment received from the U.S. Securities and Exchange Commission (SEC). According to the SEC, the crypto asset filecoin qualifies as a security under federal securities laws. Consequently, the securities regulator has requested that Grayscale withdraw the registration statement for its Filecoin Trust.
SEC Labels Filecoin a Security
In 2023, the U.S. Securities and Exchange Commission (SEC) made significant determinations regarding the classification of various crypto assets. The regulatory body identified several crypto assets, such as DASH, ALGO, LUNA, UST, and OMG, as securities or investments based on their definition.
Notably, DASH, ALGO, and OMG were explicitly mentioned in the lawsuit targeting Bittrex. Bringing the focus to filecoin (FIL), the latest development arises from Grayscale’s update on the registration statement for the Grayscale F

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