The United States Securities and Exchange Commission (SEC) asked Greyscale Investments to withdraw its application for Filecoin Trust, warning that its property, Filecoin String ($4.56), can be considered safe.
According to a May 17 statement from Grayscale, the company initially filed a Form 10 request with the regulator to launch an updated Filecoin Trust product on April 14. Version 10 will see the existing stock of Filecoin Trust, which is a public company, which will report quarterly on its financial performance.
Grayscale said it received a statement from SEC officials on May 16, in which the regulator warned that FIL “meets the definition of a security” under federal law and asked them to withdraw. they want for a trusted product. Grayscale said it believes Filecoin is not a security and will send a statement to the SEC about its opinion.
Grayscale said it “cannot predict” whether the SEC will be persuaded or not to accept its explanation, and may “seek accommodation” for the trust’s registration. On the other hand, the investment firm has warned that it may be forced to expand its trust completely.
Grayscale Filecoin Trust was established by the asset manager on March 17, 2021 with similar offerings for the oracle network Chainlink LINK ($6.710) and metaverse platform Decentraland MANA ($0.51).
Launched in 2014 by the technology company in California Protocol Labs, Filecoin is a decentralized data storage, where users pay with the local FIL token to store their data with providers, who also receive FIL for their work. This update from the SEC marks the front of the crackdown on crypto products, which recently coincided with several US crypto exchanges.
On Feb. 9, the SEC fined Kraken, a US crypto exchange, for “selling unregistered securities” and ordered the exchange to stop staking-as-a-service.
Most recently, on March 22, Coinbase – the most publicly traded crypto exchange in the United States – received a legal notice that generally leads to enforcement actions by the regulator for “possible violation of the law of movables”.
FIL’s price dipped briefly before rebounding and was trading at $4.53 at the time of the report, according to data from CoinGecko.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up