Grayscale, One of the Most Overhyped Crypto Heavyweights in the Previous Bull Rally, Is Forced to Forget Its Filecoin (FIL) Trust Ambitions
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Despite pressure from the SEC, Grayscale representatives refused to admit that FIL, the native asset of the Filecoin L1 blockchain, should be regulated as a security. Nevertheless, his registration statement on Form 10 is withdrawn.
SEC Forces Grayscale to Withdraw Filecoin Trust Registration Statement
Grayscale, an operator of a group of cryptocurrency-related trusts, will not be filing voluntary registration statements on Form 10 with the SEC regarding its new product Grayscale Filecoin Trust (OTCQB:FILG). Instead, his team will continue to post their status under the alternative reporting standards of the OTCQB, an over-the-counter trading platform.
The request was originally sent by the Grayscale team in April 2023 to increase the level of transparency of altcoin-based investment products for individuals.
However, on May 16, 2023, the United States Securities and Exchange Commission (US SEC), a US financial watchdog, asked Grayscale to withdraw its application. According to SEC documents, Filecoin (FIL) meets the definition of a security and should be regulated accordingly.
As such, Grayscale was forced to withdraw its claim. Meanwhile, his team failed to reach an agreement with the SEC on the true status of the Filecoin-based trust:
In its takedown request, Grayscale noted that it continues to believe that FIL is not a security for the reasons set out in its June 6, 2023 letter.
As previously reported by U.Today, in May 2023, Grayscale was forced to abandon its Ethereum-based ETF program due to lack of regulatory clarity.
Filecoin (FIL) lost 26% in no time
Thus, Filecoin (FIL) became the first asset for which the SEC requested a security label in 2023. In June, it issued the same label for almost all major altcoins, including Cardano (ADA), Polygon (MATIC ) and Solana (SOL).
Filecoin (FIL) is among the worst victims of the ongoing massacre in the altcoin markets. Today, June 10, 2023, at approximately 07:15 UTC, its price fell from $3.78 to $2.78 on major spot trading platforms.
By printing time, FIL managed to erase half of the losses: The asset changed hands at $3.37.
