SEC Defines Grayscale Filecoin Trust’s Underlying Asset is a Security ($FIL)

Grayscale Investments, a digital asset manager, faces SEC’s demand to remove Grayscale Filecoin Trust as it’s classified as a security under federal laws.

Who is Grayscale?

Grayscale Investments is an American digital currency asset management company and subsidiary of Digital Currency Group founded in 2013 and based in Stamford, Connecticut. Grayscale is also known for launching cryptocurrency ETF’s, including 2013 Bitcoin Trust.

SEC states that $FIL is a security, requires Grayscale to remove the Grayscale® Filecoin Trust (FIL)

Grayscale Investments, the world’s one of the largest digital currency asset manager and sponsor of Grayscale Filecoin Trust (FIL) (OTCQB: FILG) (the “Trust”), today shared an update about the status of the Trust’s Registration Statement on Form 10.

Although Grayscale does not believe FIL is a security under the federal securities laws, The SEC staff sent Grayscale a comment letter on May 16, 2023, outlining its opinion that FIL, the trust’s underlying asset, satisfies the federal securities laws’ definition of a security and that, as a result, the trust appears to satisfy the Investment Company Act of 1940’s definition of an investment company. The SEC staff asked Grayscale to quickly request the removal of the registration statement.

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