Three trade groups representing a broad interest in the crypto industry on Wednesday filed a court brief supporting a lawsuit by Grayscale Investments against the Securities and Exchange Commission (SEC) for rejecting the company’s proposal for an exchange-traded fund. Bitcoin Cash (ETF).

The groups, which include the Blockchain AssociationChamber of Progress and Coin Center, and Chamber of Digital Commerce, filed the amicus curiae brief in the US Court of Appeals for the District of Columbia Circuit on Tuesday. In its filing, the group argued that the SEC had firmly denied all requests to list ETFs holding Bitcoin, despite having approved several ETPs holding Bitcoin derivatives.

The group claimed that the SEC’s denial of Grayscale’s proposal to convert its flagship fund into an ETF violates the regulator’s procedures. The group explained that despite the approval of several futures-based Bitcoin ETPs, the SEC abandoned its investor protection mandate and abused its authority by denying all applications for a spot-based Bitcoin ETP, including the Grayscale proposal.

The group said denying the applications is inconsistent with the Commission’s treatment of similar products and “cuts back on the SEC’s policy and regulatory imperatives” by depriving consumers of a product that clearly satisfies the regulatory requirements for listing on an exchange. of national values.

The groups argued that there is strong consumer demand in the US for exposure to Bitcoin and that Bitcoin ETFs offer safe and transparent options for investors. The group claimed that the SEC has applied a double standard in universal disapproval of applications to list Bitcoin exchange-traded products.

Crypto firms such as Blockchain Capital, Chainalysis, Goldman Sachs, Binance.US, and Fidelity are also included in the membership lists of the Blockchain Association, the Chamber of Progress and Coin Center, and the Chamber of Digital Commerce.

In June, the SEC rejected Grayscale’s request to convert its flagship Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot exchange-traded fund, citing the investment manager’s failure to respond to questions about concerns about market manipulation and the lack of sufficient protections under Grayscale. proposal. Grayscale then filed a motion to challenge the decision with the US Court of Appeals for the District of Columbia Circuit.

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