James Murphy, the founder and chairman of Murphy & McGonigle a law firm specializing in services recently expressed his views, on media regarding the potential rejection of spot Bitcoin ETF applications.
According to him if these applications are indeed rejected the applicants might take action against the United States Securities and Exchange Commission (SEC).
In fact there is even a chance that the SEC could face defeat in this lawsuit. Drawing attention to Grayscales position of remaining silent, on this matter it is possible that the court may again deem the SECs decision as “arbitrary and capricious.”
James Murphy further argues that there seems to be no reason for the SEC to reject these applications. In a case involving Grayscale despite all justifications presented for rejecting their application as an asset management company they still ended up losing the lawsuit.