SEC sees signs of a security in the Filecoin platform’s token
This is how the regulator commented on Grayscale’s application to register a trust based on cryptocurrency
![SEC sees signs of a security in the Filecoin platform’s token](https://storage.getblock.net/source/1/kwS9vGoiTvH7EsYkLwwWFrmDBMnJFTqd.webp)
18.05.2023 - 07:20
258
3 min
0
What’s new? The US Securities and Exchange Commission (SEC) has urged digital asset management company Grayscale Investments to withdraw its application for a Filecoin Trust. Grayscale filed with the agency on April 14 to launch the product, and on May 16 received a response in which the regulator warned that the FIL token “meets the definition of a security” under federal law.
What else is known? According to Grayscale, FIL is not a security, and they intend to send an explanation of their arguments to the SEC. The company said it “cannot predict” whether it will be able to convince the commission to accept its explanation, and if not, Grayscale will seek terms that will allow it to register a Filecoin Trust under the law. Alternatively, the company may be forced to liquidate the fund entirely.
What is known about Grayscale? It is a digital asset management fund founded in 2013. It allows US-accredited investors to buy cryptocurrency investment products in a regulated environment through traditional market instruments. It is part of Barry Silbert’s Digital Currency Group (DCG) conglomerate, which ran into problems earlier this year paying off liabilities and began selling shares of Grayscale crypto trusts for that purpose.
![US Chamber of Commerce accuses SEC of “haphazard” attempts to regulate crypto](https://storage.getblock.net/source/1/rGsP8xYmYeZYhsXTX_1MlMZ36n_QS-EU.png)
US Chamber of Commerce accuses SEC of “haphazard” attempts to regulate crypto
Representatives of the non-profit organization supported Coinbase in its effort to get the commission to announce the rules of the industry’s operation
What is known about Filecoin? It is a decentralized file storage system launched in 2017. The platform raised $257 million in an initial coin offering (ICO). As of May 18, 06:40 UTC, the native token FIL is trading at $4,55, having gained 2,9% in 24 hours (CoinGecko’s data). In April, the project’s team launched its own cloud computing platform for creating decentralized applications (DApps) called Filecoin Web Services (FWS).
On March 27, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against the Binance exchange and its CEO Changpeng Zhao, which lists bitcoin, Ethereum, and Litecoin cryptocurrencies as commodities.
Useful material?
Market
Australia’s largest financial institutions have refused to process payments to digital asset trading platforms due to the risk of fraud
Jul 26, 2024
Politics
According to the politician, the value of the country’s bitcoin reserves should equal the value of gold reserves
Jul 26, 2024
Mining
The capacity of the Bitaxe device used by the network participant is only 500 Gh/s
Jul 25, 2024
Trends
Meanwhile, Trump-inspired assets have not shown significant growth
Jul 22, 2024
Market
The fee will be as much as 2,5% compared to 0,25-0,19% for competitors
Jul 18, 2024
Market
This is the third consecutive month of decline
Jul 18, 2024