Grayscale employs a former Solicitor General to assist in obtaining Bitcoin ETF clearance
Investment firm Davis Polk & Wardwell LLP and its in-house legal counsel have engaged Don Verrilli, a former U.S. Solicitor General, as a senior legal strategist ahead of the July 6 SEC judgement.
If the Securities and Exchange Commission (SEC) rejects Grayscale Investments’ application for a spot Bitcoin (BTC) exchange-traded fund (ETF) on July 6, the company has engaged a former U.S. Solicitor General to prepare for a court battle.
It has been awaiting a ruling from the SEC since October 19, 2021, when the business filed its application to convert its $19.8 billion Grayscale Bitcoin Trust (GBTC) into a spot-based ETF.
There have been two more delays in the SEC’s ruling, both in February. The application will be decided on July 6th.
It is a “bold move” by blockchain advocate organisation Blockchain Association head Jake Chervinsky, who says the SEC has little chance of “surviving a judicial fight” if it rejects Grayscale’s application today.
A lawsuit under the Administrative Procedure Act (APA) would be an option, according to Grayscale CEO Michael Sonnenshein, who told Bloomberg in March that if the Securities and Exchange Commission rejects Grayscale’s application for the Bitcoin Spot ETF.
While criticising the regulator for approving crypto futures ETF products in October 2021, he hasn’t allowed a spot ETF yet.
New hiring Donald B. Verrilli Jr. served as US Solicitor General throughout Obama’s administration from 2011 to 2016. The Washington D.C. office of his California law firm, Munger, Tolles & Olson, which he co-founded in 2016, has him as a partner.
More than 50 cases have been brought to the Supreme Court by Grayscale’s attorney, including some involving breaches of the Administrative Procedure Act.
A senior legal strategist, he will work with Davis Polk & Wardwell LLP lawyers and in-house counsel, including Craig Salm, who serves as the company’s chief legal officer.
One of the nation’s most experienced lawyers, Verrilli has “a strong knowledge of legal theory, administrative process, and the practical problems of dealing with the judicial branch,” according to Grayscale.
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