Coinbase's Chief Legal Officer, Paul Grewal, on Friday said that he is confident in the approval of the Spot Bitcoin ETF by the U.S. Securities and Exchange Commission. The same goes for other executives such as Mike Novogratz, Cathie Wood, and Larry Fink who also think that the SEC's defeat in the Grayscale case in court is important for the approval of the Spot Bitcoin ETF.
Paul Grewal, Coinbase's Chief Legal Officer, in an interview with CNBC, said that the SEC would have to approve Spot Bitcoin ETF's application under the bill. Although he did not say when, because the decision is entirely up to the SEC, he is confident of this.
Paul Grewal argues that the United States Court of Appeals has made it clear that the SEC cannot arbitrarily reject Bitcoin ETF applications. The court ruled in favor of Grayscale's efforts to convert the large GBTC Bitcoin fund into an ETF. Grayscale has previously submitted an updated Spot Bitcoin ETF application.
The SEC has been reprimanded by a federal judge for failing to provide grounds for action against crypto firms. For now, the authority is working with Bitcoin ETF applicants, indicating that the Spot Bitcoin ETF will be present in the market.
Coinbase is one that will likely benefit from the approval of any Bitcoin ETF. The SEC only has to comply with the law and is required to apply the law "neutrally" to the application. The SEC's action has had a major impact on crypto trading volumes and investors.
Coinbase is also trying to fend off SEC claims that the regulator has acted outside of its jurisdiction in regulating the crypto industry.
