Grayscale Investment revealed in a recent press release the US Securities and Exchange Commission believes that filecoin (FIL) meets the definition of a security under the federal securities laws.
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In the press release, Grayscale said the SEC staff requested from it to withdraw the registration of Grayscale Filecoin Trust. Grayscale noted it doesn't share the SEC's view and intends to "respond promptly to the SEC staff with an explanation of the legal basis for Grayscale's position."
"Grayscale cannot predict whether the SEC staff will be persuaded that Grayscale's position is correct, and if not, whether it may become necessary for Grayscale to seek accommodations that would enable the Trust to register under the Investment Company Act of 1940 or, alternatively, seek dissolution of the Trust," the company added.
As of press time, Filecoin made no public statements regarding the matter.
In late April, SEC Chair, Gary Gensler, said cryptocurrency exchanges are offering securities in the form of digital tokens and they know it. Gensler slammed crypto platforms, saying they don't comply with the law, leaving investors without "basic protections."
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