Grayscale Investments Clashes with SEC over Filecoin Trust’s Status as a Security

Grayscale Investments, the world’s largest digital currency asset manager and sponsor of Grayscale Filecoin Trust (FIL), provided an update on the status of the Trust’s Registration Statement on Form 10.

On May 16, 2023, Grayscale received a comment letter from the Securities and Exchange Commission (SEC) staff expressing the view that FIL meets the definition of a security under federal securities laws. Consequently, the SEC staff requested Grayscale to promptly withdraw the registration statement.

Grayscale disagrees with the SEC staff’s classification of FIL as a security and intends to respond to the SEC with a legal explanation supporting its position. However, the outcome remains uncertain, and it is unknown whether Grayscale’s argument will persuade the SEC staff.

If Grayscale’s position is not accepted, it may need to seek accommodations to enable the Trust’s registration under the Investment Company Act of 1940 or consider dissolving the Trust.

Grayscale’s statement was made to comply with the disclosure requirements of OTCQB. The Trust’s Annual Report and other disclosures, satisfying the Alternative Reporting Standard disclosure guidelines for OTCQB, can be accessed on the OTC Markets website.

Grayscale Investments offers investors secure and regulated access to the digital economy through a range of investment products. As the world’s largest digital currency asset manager, Grayscale has a solid track record and extensive expertise. Investors, advisors, and allocators rely on Grayscale for exposure to single assets, diversification, and thematic investments.

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