The U.S. Securities and Exchange Commission believes Filecoin’s FIL token qualifies a security, according to a Wednesday announcement from Grayscale Investments.

The major crypto investment firm launched its Grayscale Filecoin Trust in March 2021, which gives investors indirect exposure to FIL. (Disclosure: Protocol Labs, the company behind Filecoin, is one of Decrypt’s 22 investors.) As part of the firm’s outlined product lifecycle, Grayscale voluntarily filed Form 10 with the SEC to obtain SEC reporting status.

But the SEC told Grayscale in a letter yesterday that FIL “meets the definition of a security under the federal securities laws” and, therefore, the application must be withdrawn, according to the firm.

“Grayscale does not believe that FIL is a security under the federal securities laws and intends to respond promptly to the SEC staff with an explanation of the legal basis for Grayscale’s position,” the company said in announcing the SEC’s finding. 

Protocol Labs, the company behind the Filecoin protocol, did not immediately respond to Decrypt’s request for comment. 

FIL, the 33rd biggest digital asset by market cap, dipped on the news: it is currently trading for $4.54, according t

Go to Source to See Full Article
Author: Mathew Di Salvo

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details