Grayscale Hires Former US Solicitor General Ahead of Spot ETF Ruling
Grayscale Investments has hired an ex-U.S. Solicitor General to reinforce its legal team in preparation for a possible legal dispute with the U.S. Securities and Exchange Commission (SEC) as the agency weighs whether to allow the digital currency investing services company to convert its Bitcoin trust into an exchange-traded fund (ETF).
The move comes after Grayscale waited months for the SEC to convert its leading $19.8 billion Grayscale Bitcoin Trust (GBTC) into a spot-based ETF. Grayscale first filed its application to the SEC last October, but the regulator delayed its decision twice, with the final verdict expected to come on July 6.
Blockchain Association head of policy Jake Chervinsky believes that Grayscale’s new addition to its legal team represents a robust move, arguing the SEC stands little chance of “surviving a legal challenge” if it decides to reject the application next month.
Grayscale bolstered its legal team by hiring Donald B. Verrilli Jr., who served as a U.S. Solicitor General from 2011 to 2016 during Barack Obama’s term. Verrilli Jr. currently serves as a partner in the legal firm Munger, Tolles & Olson.
Earlier this year, Michael Sonnenshein, Chief Executive Officer of Greyscale, said his company would explore filing a lawsuit under the Administrative Procedure Act (APA) if the SEC rejects its application.
Sonnenshein has criticized the agency multiple times in the past, which gave the approval for crypto futures ETF offerings in October.
Grayscale tweeted that Verrilli has participated in over 50 cases before the U.S. Supreme Court, several of which included Administrative Procedure Act (APA) violations.
The crypto investing services provider said Verrilli is one of the most experienced lawyers in the U.S. with “a deep understanding of legal theory, administrative procedure, and the practical matters of working with the judiciary branch.”
“We are thrilled that he is joining our team as we work towards a positive resolution for investors and the general public.”