Grayscale protests the SEC's delay in listing its multi-asset crypto ETF GDLC, stating that the suspension order lacks a legal basis and has harmed investors' interests. GDLC plans to hold BTC, ETH, XRP, SOL, and ADA, with BTC accounting for approximately 80%. If approved, it would be the first multi-asset crypto ETF in the United States. Grayscale stated that it had constructive discussions with the SEC and believes that the delay is more likely due to procedural reasons. [CoinDesk]

On July 12 (UTC+8), Grayscale sent a letter from its lawyers to the U.S. Securities and Exchange Commission (SEC) regarding the listing of its multi-token ETF, which includes Bitcoin, Ethereum, Solana, XRP, and Cardano, on the New York Stock Exchange Arca. The letter alleges that the SEC's suspension of the fund's listing is causing "harm to investors." Grayscale claims it was approved on July 1, but the SEC subsequently requested further review and halted the listing. Grayscale warned that it may file a lawsuit to force the SEC to release the listing as soon as possible, and emphasized that the SEC should not use internal processes to circumvent the timely approval or rejection regulations set by Congress. The incident highlights that despite the Trump administration's relaxation of crypto regulation, multi-asset crypto ETFs still face severe scrutiny in the United States. [MetaEra]

MAG7.SSI

Grayscale Urges SEC to Approve Its Multi-Asset Fund: Delay Has Harmed the Market

Asset management giant Grayscale is challenging the US Securities and Exchange Commission’s decision to pause the launch of its large-cap fund holding Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Solana (SOL), and Cardano (ADA), proclaiming its investors are “suffering harm” due to the delay.Grayscale Pushes Back On SEC PauseGrayscale has filed a letter with the SEC in response to the agency’s unexpected pause on its plan to transform the Grayscale Digital Large Cap Fund (GDLC) into a spot ETF.The GDLC primarily comprises Bitcoin, which accounts for 80% of its underlying assets. Another 11% of its holdings are in Ether, while Solana, XRP, and Cardano account for 2.8%, 4.8% and 0.8% of the fund, respectively.In theletter, Grayscale’s legal team urged the Commission to follow rules enacted by Congress that create deadlines for the greenlighting of investment vehicles such as the GDLC.The SEC had alreadyapprovedthe conversion on July 1 on an “accelerated basis”. However, a day later, the regulatorissued a stay orderto review the approval due to a pending internal review.“Grayscale, the Exchange and the Fund’s current investors are suffering harm as a result of the delay in public launch of the Fund,” the company said.Grayscale also claimed that the fund’s approval should stand by default as the SEC missed its legal deadline to act on the proposal, and that under federal law, the conversion of the fund should be considered automatically approved.The asset manager’s lawyers are now contemplating filing a petition to force the regulator to allow its fund to begin trading as soon as possible.“Grayscale and the Exchange are therefore considering whether to file a petition requesting the Commission to lift the stay imposed by Rule 431(e) while the Commission reviews the action taken by delegated authority, so that the Fund may promptly launch while that review proceeds,” they postulated.The move to convert GDLC into a spot fund is in line with Grayscale’s wider strategy to introduce more crypto products to mainstream financial markets, following thesuccessful introductionof its spot BTC ETF in early 2024.Meanwhile, asset managers have flooded the SEC’s desk with applications for ETF proposals tracking the prices of several cryptocurrencies, including meme coins like Dogecoin and Official Trump and other altcoins, amid a more lenient regulatory backdrop in the United States since crypto-friendly President Donald Trump returned to the White House in January.

Investors Are “Suffering Harm” Due To SEC’s Surprise Pause On ETF Holding XRP And Solana, Asserts Grayscale

Grayscale Protests SEC's Delay in Listing its Multi-Asset Crypto ETF GDLC

On July 11, Davis Polk & Wardwell LLP, representing Grayscale, sent a letter to the SEC on July 8, arguing that its Digital Large Cap Fund should be considered automatically approved on July 2. According to Section 19(b)(2) of the Securities Exchange Act, the SEC must make a final decision within 240 days of the publication of a proposal, otherwise the proposal will be deemed automatically approved. Although the SEC approved and then suspended the proposal on July 1, Grayscale's lawyers argue that the SEC's internal rule 431(e) cannot override the statutory deadline set by Congress. The letter pointed out that the delay has caused damage to Grayscale, the exchange, and investors, and urged the SEC to allow the fund to launch as soon as possible. [Deep Tide TechFlow]

Grayscale's lawyer sends a letter to the SEC: It has no right to impose a "suspension" order on GDLC's ETF conversion

Grayscale is pushing back against the U.S. Securities and Exchange Commission's decision to put a pause on its multi-crypto fund and says investors are "suffering harm" due to the delay.

In a letter sent this week to the SEC's Division of Trading and Markets director, secretary, and acting general counsel, Grayscale's lawyers urged the agency to adhere to rules enacted by Congress that create deadlines for approval for products like the Grayscale Digital Large Cap Fund LLC.

Grayscale's lawyers now say the firm is considering filing a petition asking the stay to be lifted.

"Grayscale, the Exchange and the Fund’s current investors are suffering harm as a result of the delay in public launch of the Fund, and Grayscale and the Exchange are therefore considering whether to file a petition requesting the Commission to lift the stay imposed by Rule 431(e) while the Commission reviews the action taken by delegated authority, so that the Fund may promptly launch while that review proceeds," the lawyers said.

"We therefore respectfully request that the Office of the Secretary promptly notify the Exchange that, notwithstanding the July 1, 2025 stay of the Division of Trading and Market’s order, the Proposal was deemed approved by the Commission on July 2, 2025, as provided in Section 19(b)(2)(D) of the Exchange Act," they added.

An SEC spokesperson declined to comment.

Last week, the SEC approved Grayscale's proposal to convert the fund into an ETF on an "accelerated basis." The fund trades over the counter and is composed primarily of Bitcoin at almost 80% and Ethereum at about 11%. Solana, Cardano, and XRP are also represented with single-digit percentages, according to its website.

However, a day later, the agency put a pause on it. In a letter sent to the New York Stock Exchange about the fund, SEC Deputy Secretary J. Matthew DeLesDernier said the agency's Division of Trading and Markets granted that approval, but said the commission would review it.

The SEC is currently considering a stack of crypto ETF proposals from those tracking XRP to PENGU to DOGE amid a friendlier regulatory environment for crypto since President Donald Trump took office earlier this year. Some have signaled that approval of the Grayscale Digital Large Cap ETF could signal a greenlight for other pending proposals.

Grayscale urges SEC to allow the launch of its multi-crypto fund, citing harm to investors

Cryptocurrency asset manager Grayscale has appealed the US Securities and Exchange Commission's (SEC) decision to halt its exchange-traded fund (ETF) containing XRP, Solana, Bitcoin, Ethereum, and Cardano. The company stated that this delay was harming its investors and called on the regulator to open the fund for trading as soon as possible. Grayscale's official letter to the SEC stated, "The exchange and the fund's existing investors are being harmed by the delay in the fund's commencement of public trading." Grayscale also stated that it may pursue legal action if necessary to force the fund to commence trading. The SEC approved the Grayscale Digital Large Cap Fund (GDLC) ETF on July 1. However, it halted trading the same week, citing the need for further scrutiny of the product. Grayscale argued that this move violated timeframes established by Congress, stating, "The Commission's internal regulatory rules cannot be used to circumvent a law established by Congress." According to SEC filings, 80% of the GDLC fund is comprised of Bitcoin. Ethereum comes in second with 11%, followed by Solana with 2.8%, XRP with 4.8%, and Cardano with 0.8%. The ETF would trade on NYSE Arca under the ticker symbol "GDLC." *This is not investment advice.

Grayscale Sends Special Letter to SEC Regarding XRP, Solana, and Cardano ETFs – Here’s What It Says

On July 11 (UTC+8), according to Bloomberg analyst James Seyffart, Grayscale and its lawyers submitted a letter responding to the U.S. Securities and Exchange Commission (SEC)'s order to halt the ETF conversion of GDLC, arguing that the SEC has no right to do so. Prior to this news, the U.S. Securities and Exchange Commission (SEC) had suspended Grayscale's Digital Large Cap Fund's plan to convert to an exchange-traded fund (ETF) and placed it under further review. (Source: Bitpush) [MetaEra]

Grayscale Submits Letter of Protest Against SEC's Suspension Order on its Digital Large Cap Fund ETF Conversion

On July 11, according to Bloomberg analyst James Seyffart, Grayscale and its lawyers submitted a letter responding to the U.S. Securities and Exchange Commission (SEC)'s "suspension" order on the ETF conversion of GDLC, arguing that the SEC has no right to do so. Previous news reported that the U.S. Securities and Exchange Commission (SEC) has suspended Grayscale's Digital Large Cap Fund's plan to convert to an exchange-traded fund (ETF) and placed it under further review.[BlockBeats]

Grayscale Submits Letter of Protest, Protesting SEC's Order to Suspend Conversion of its "Digital Large Cap Fund" ETF

Grayscale Submits Letter of Protest to SEC Regarding Suspension Order for "Digital Large Cap Fund" ETF Conversion

July 11th, According to Bloomberg analyst James Seyffart, Grayscale and its lawyers sent a letter in response to the U.S. Securities and Exchange Commission (SEC)'s "halt" order regarding GDLC's ETF conversion, arguing that the SEC does not have the authority to do so. Prior to this news, the U.S. Securities and Exchange Commission (SEC) had halted the conversion of the Grayscale Digital Large Cap Fund into an Exchange-Traded Fund (ETF) and placed it under further review. [BlockBeats]

Grayscale Submits Letter of Protest, Challenges SEC's "Digital Large Cap Fund" ETF Conversion Halt Order

HIGHLIGHTS Grayscale argued in its letter that the SEC doesn't have the authority to stay its approval on the GLDC ETF conversion. Lawyers for the asset manager argued that the 240-day window deadline had passed for a SEC decision, which means it has been approved. They also argued that 19b of the Exchange Act doesn't permit for the SEC to put stay orders but only approve or dismiss the proposal. Grayscale and NYSE Arca are considering filing a petition if the SEC doesn't allow the GDLC ETF to launch. Asset manager Grayscale has responded to the SEC's stay order regarding its proposal to convert its Digital Large Cap Fund into an ETF. The asset manager argued that the Commission doesn't have the authority to put such an order on the proposal under Section 19b of the Exchange Act.
Grayscale Argues SEC Has No Power To Stay Its Proposal
In a letter sent to the SEC, the asset manager's lawyers, Davis Polk, argued that the SEC lacks the authority to stay a rule change proposal under Section 19b of the Exchange Act. The lawyers argued that this section only gives the Commission the right to approve or disapprove a rule change.

This move comes just a week after the SEC put a stay order on its approval order of Grayscale's proposal to convert its Digital Large Cap Fund into an ETF. The Commission had approved the proposal, but asked that the stay order stay in effect until it orders otherwise.

The asset manager's lawyers argue that the stay order is invalid and that the Digital Large Cap Fund conversion has received the SEC's approval under Section 19(b)(2)(D) of the Act. The section stipulates that a proposal is deemed approved if the Commission fails to approve or disapprove within 240 days of publication.

Grayscale acknowledged that the SEC can put a stay order on a decision made by a delegated authority under Rule 431 of the Commission’s Rules of Practice. However, this provision cannot override Section 19b of the Exchange Act, which only gives the agency power to approve or disapprove a proposal.

As such,  in this case, the Commission was well within its right to stay its approval order. However, in doing so, it failed to approve or disapprove the order GDLC conversion proposal within the 240-day window, meaning that the proposal has ultimately gained approval under Section 19(b)(2)(D).
Harm Caused To The Asset Manager And Exchange
Davis Polk stated that Grayscale, NYSE Arca, which is meant to list the Fund, and the Fund's current investors are suffering harm as a result of the delay in the public launch of the Fund. The Fund is an index-based crypto ETF that will hold Bitcoin, Ethereum, Solana, XRP, and Cardano.

The lawyers further revealed that the interested parties are considering whether to file a petition requesting that the SEC lift the stay imposed by Rule 431(e), so that the Fund may launch while the Commission's review under the stay order proceeds.

However, Grayscale and the NYSE Arca believe that a simpler path will be for the Commission to recognize that Rule 431 (e) cannot override the deadline under Section 19(b)(2) if the Commission fails to finalize its own decision within the 240-day window.

As market expert Nate Geraci noted, the asset manager will not be happy with the stay order, especially since Truth Social has filed for its index-based crypto ETF. Geraci stated that being first to market matters, which is why Grayscale would look to launch its DLC fund as soon as possible.

Grayscale Challenges SEC’s Stay Order Blocking GDLC’s ETF Conversion

Attorneys for Grayscale argued that the US regulator's delay of the approval or disapproval decision clashes with existing statutes.

Grayscale calls out SEC delay of Digital Large Cap Fund ETF listing

Grayscale's challenge to the SEC's stay highlights ongoing regulatory tensions, potentially impacting future crypto fund approvals and market dynamics.
The post Grayscale challenges SEC stay on approval of BTC, ETH, XRP, ADA large-cap fund appeared first on Crypto Briefing.

Grayscale challenges SEC stay on approval of BTC, ETH, XRP, ADA large-cap fund

Grayscale抗议SEC推迟其多资产加密货币ETF GDLC的上市，称暂停令缺乏法律依据，且损害了投资者利益。GDLC计划持有BTC、ETH、XRP、SOL和ADA，其中BTC约占80%。如果获批，它将成为美国首个多资产加密货币ETF。Grayscale表示与SEC进行了建设性讨论，认为推迟更可能是出于程序性原因。[CoinDesk]

Grayscale抗议SEC推迟其多资产加密货币ETF GDLC的上市

Grayscale抗議SEC推遲其多資產加密貨幣ETF GDLC的上市，稱暫停令缺乏法律依據，且損害了投資者利益。GDLC計劃持有BTC、ETH、XRP、SOL和ADA，其中BTC約佔80%。如果獲批，它將成爲美國首個多資產加密貨幣ETF。Grayscale表示與SEC進行了建設性討論，認爲推遲更可能是出於程序性原因。[CoinDesk]