Grayscale Hires Donald B. Verrilli as Senior Legal Strategist
With this new hire, the digital asset manager aims to receive SEC approval to convert its Bitcoin trust into a Bitcoin ETF. Verrilli will collaborate with attorneys and in-house legal advisors and work as the lead legal strategist for the firm.
As we enter the final month before a response is due on our conversion request $GBTC to an ETF, we engaged Donald B. Verrilli, Jr., former United States Solicitor General, as additional legal counsel. A short 🧵 why:
— Grayscale (@Grayscale) June 7, 2022
In a recent tweet, Grayscale expressed optimism that Verrilli would be a great addition to the company’s “strongest team of legal minds” working to set up a spot Bitcoin ETF.
Verrilli is an experienced American attorney who has won notable legal cases throughout his career. He was appointed United States Solicitor General by former US President Barack Obama in 2011.
An iron hand
Grayscale’s plans to launch an ETF in the US are not new, but have so far failed as the SEC has yet to approve such a product. The decision to approve the conversion of its Grayscale Bitcoin Trust (GBTC) into a BTC spot ETF has been delayed until July 6 by the regulator.
General Counsel, Craig Salm, said last year that the watchdog could have a “clear view” regarding ETFs, but it must also demonstrate a “reasonable probability” in this regard.
Last night our lawyers at Davis Polk sent a letter to the SEC claiming that the approval of #Bitcoins ETFs based on futures contracts, but not #Bitcoins Cash ETFs, such as $GBTCis “arbitrary and capricious”, and therefore in violation of the Administrative Procedure Act (APA).
—Craig Salm (@CraigSalm) November 30, 2021
On the other hand, the SEC raised concerns about converting GBTC to BTC spot ETF in February 2022. It asked the Grayscale Trust how it intended to make its Trust more transparent and liquid to make it vulnerable to manipulation.
Interestingly, when asked if the company could file a lawsuit against the SEC, CEO Michael Sonnenshein said earlier this year:
“I think all options are on the table.”