Grayscale: "The U.S. SEC Has No Authority to Block the GDLC Large Cap Fund's ETF Conversion Approval"

Grayscale has submitted an official rebuttal to the U.S. Securities and Exchange Commission (SEC), which temporarily suspended approval for converting its 'Digital Large Cap Fund (GDLC)' into an ETF. GDLC consists of Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).

On the 11th (local time), Grayscale stated in its official letter to the SEC, "The GDLC ETF conversion should be regarded as automatically approved as of July 2," adding, "The SEC does not have the authority to retroactively halt this." Grayscale claims that ETF conversion approval has already become legally effective.

Previously, on the 1st, the SEC temporarily suspended the effectiveness of the GDLC ETF conversion, announcing that it would review the decision by the relevant trading and markets division that had granted approval. However, Grayscale explained that this action violated the approval deadline (a maximum of 240 days) specified by securities law, and that after this period the SEC cannot further intervene.

Grayscale emphasized, "The SEC's internal regulation (Rule 431) cannot override the legally established approval deadline," and asserted, "Since the approval period has already lapsed, the GDLC ETF conversion was automatically approved."

At the end of the letter, Grayscale also noted, "We are encouraged that, under the new leadership, the SEC is striving to bring clarity to digital asset regulation," adding, "We look forward to continuing constructive discussions moving forward."