On Friday, Paul Grewal, the Chief Legal Officer of Coinbase, expressed his confidence in the approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission. Like other notable figures such as Mike Novogratz, Cathie Wood, and Larry Fink, Grewal believes that the SEC’s recent legal setback against Grayscale in court holds significance for the potential approval of a spot Bitcoin ETF.
Coinbase CLO Paul Grewal Says SEC Will Approve Spot Bitcoin ETF
In an interview with CNBC, Coinbase’s Chief Legal Officer, Paul Grewal, emphasized that the SEC is required to approve the application for a spot Bitcoin ETF according to the law. Although he refrained from specifying a timeline, as the decision lies entirely within the purview of the SEC, he expressed confidence in its eventual approval.
“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law.”
Paul Grewal asserts that the U.S. Court of Appeals has established that the SEC cannot dismiss Bitcoin ETF applications arbitrarily or without substantial cause. This was evident in the court’s decision in favor of digital asset management company Grayscale, allowing them to transition their substantial GBTC bitcoin fund into an ETF. According to a report by CoinGape Media, Grayscale has subsequently submitted an updated application for a spot Bitcoin ETF.
Federal judges have criticized the SEC for not providing adequate justification for its actions against cryptocurrency firms. Presently, the regulatory body is working in collaboration with Bitcoin ETF applicants, signaling the imminent arrival of a spot Bitcoin ETF.
Coinbase Will Be Likely Beneficiary
Coinbase stands poised to gain substantial benefits from the potential approval of a Bitcoin ETF. The SEC’s obligation is to adhere to legal mandates and assess applications impartially. The SEC’s actions have had a notable impact on cryptocurrency trading volumes and investor activity.
Additionally, Coinbase is actively pursuing the dismissal of the SEC lawsuit, contending that the regulator has overstepped its jurisdiction in regulating the crypto industry.
With a decade of experience in the Fintech sector, Varinder brings over five years of expertise specifically focused on blockchain, crypto, and Web3 advancements. His passion for technology and analytical mindset have been evident in his contributions, totaling over 5000+ news pieces, articles, and papers. At CoinGape Media, Varinder envisions the immense potential of these pioneering technologies and is presently covering the latest updates and progressions in the crypto industry.
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