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Eleanor Territt attacks the SEC’s designation of Filecoin as a security
- Eleanor Territt recently criticized the SEC’s rating of Grayscale as a security.
- The SEC has asked Grayscale to withdraw its application for the Filecoin Trust, claiming that FIL is a security.
- Teret tweeted that the SEC was silent when it investigated Filecoin five years ago
Crypto journalist Eleanor Terrett has criticized the Securities and Exchange Commission (SEC) for its recent designation of Grayscale’s Filecoin as a financial instrument. The journalist confirmed that the same regulatory body was silent when it investigated the same product five years ago.
On May 17, leading crypto asset manager Grayscale announced that the SEC had ordered the company to withdraw its application for a Filecoin Trust, based on the regulator’s view that “the trust’s underlying asset, FIL, meets the definition of a security under the federal law.” Insurance Law.
After the announcement, Terret shared a post on Twitter, commenting on the committee’s preposterous move:
New: Grayscale says SECGov asked it to withdraw an application to launch a $FIL Trust product on the grounds that it might meet the definition of an investment firm and that $FIL meets the definition of a security. Interestingly, the SEC investigated @Filecoin…
— Eleanor Terrett (@EleanorTerrett) May 17, 2023
According to a post made public by the asset management platform, SEC employees have sent a letter to Grayscale asking the company to withdraw its application to make Filecoin Trust product a reporting company, claiming that Filecoin is a security.
The company stated that it strongly disagrees with the regulator’s allegations and added that the company is seeking clarification from the SEC. Grayscale Quotes:
Grayscale does not believe the FIL is a security under the federal securities laws and intends to respond immediately to the SEC staff with an explanation of the legal basis for Grayscale’s position.
On May 9, Grayscale officially announced the launch of the Grayscale Funds Trust, a “legal trust structure in Delaware” to manage its publicly traded financial products. Although the company has embarked on several strategies to enhance its operations, regulator intervention stands as a roadblock.
Eleanor Terret Attacks’ SEC designation of Filecoin as a security appeared first in Coin Edition.
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