SEC Sees Filecoin as “Security,” Requests Grayscale Dissolve FIL Trust

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    The U.S. Securities and Exchange Commission (SEC) has asked Grayscale Investments to withdraw its application to the Filecoin Trust on the grounds that Filecoin “may be considered a security.” cointelegraph reportciting Grayscale’s announcement.

    A trust would have resembled a public company

    Grayscale filed a Form 10 application with the SEC to find an updated Filecointrust product about a month ago. Like any publicly traded company, it would have submitted financial reports on a regular basis.

    However, in a letter dated May 16, the SEC warned Grayscale that Filecoin (FIL) meets the “definition of a security” under federal law and asked it to withdraw its application for trust products.

    Grayscale remains

    According to Grayscale, Filecoin is not a security. They plan to send a justification for this purpose to regulators. The company feels that the SEC’s actions and decisions are unpredictable, but will likely “seek consideration” toward trust registration. However, I am concerned that I may be asked to dissolve the trust.

    Grayscale will launch the Grayscale Filecoin Trust in 2021. There were similar products at the time, including those for Chainlink and Decentraland.

    Relentless crackdown on cryptocurrencies by surveillance agencies continues

    Technology company Protocol Labs created Filecoin in 2014 as a decentralized platform for data storage. Users store their data at providers and pay with FIL tokens.

    The latest news reflects a series of crackdowns on cryptocurrencies. The SEC has lashed out at US-based cryptocurrency exchanges such as Kraken and Coinbase. Bankless Times said in February it agreed to pay the SEC a $30 million settlement to shut down its crypto staking platform for U.S. users after Kraken was indicted for selling unregistered securities. reported.

    Most recently, the SEC accused Coinbase of violating securities laws in operating staking and exchange services. The regulator sent a Wells Notice to the exchange in March, telling it that its forthcoming course of action could include an injunction. It did not disclose how Coinbase violated the law.


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