Grayscale Withdraws SEC Application for Filecoin (FIL) Trust Launch

Uncertainty looms over cryptocurrency's end game in the U.S. after several events within the week. Grayscale, a leading digital asset management firm, recently filed a request to withdraw its application for a Filecoin (FIL) trust product, per Global Newswire.

Timeline of Filecoin

Filecoin price analysis indicates the behavior over the past 48 hours reveals an upward trajectory initially, followed by a notable shift further towards a bullish movement, leading to a substantial increase from its position at $4.408. On May 19, 2023, the price experienced a significant crash, resulting in a depreciation of $4.

Although the cryptocurrency market is full of assets of various shapes and sizes, with different utilities and investor appeal, not all of them present an equally good opportunity to invest at all times. In fact, some might be wise to outright avoid trading, at least for the time being.

Filecoin price analysis indicates the behavior over the past 48 hours reveals an upward trajectory initially, followed by a notable shift towards a bearish movement, leading to a substantial decline from its position at $4.63. On May 18, 2023, the price experienced a significant crash, resulting in a depreciation of $4.

Filecoin Foundation refuted the U.S. Securities and Exchange Commission's (SEC) assertion that its FIL token is a security, according to a statement shared with CryptoSlate. On May 17, Grayscale said the SEC asked it to withdraw its registration statement for its Filecoin Trust because the token meets the definition of a security.

Grayscale Investments, the largest digital currency asset manager by assets under management, made an announcement on May 17 regarding a comment received from the U.S. Securities and Exchange Commission (SEC). According to the SEC, the crypto asset filecoin qualifies as a security under federal securities laws.

The US Securities and Exchange Commission (SEC) is back on the attack on the security token front, this time rejecting the Grayscale Filecoin Trust's application for registration.

Greyscale has now fallen into te SEC's radar after the watchdog made an move on filecoin which could affect Grayscale filecoin trust. According to the SEC filecoin can be regarded as a security.

The SEC's recent classification of Filecoin as a security has raised eyebrows among Grayscale investors and the wider crypto market. This development adds a new twist to the ongoing debate about the regulatory status of cryptocurrencies, potentially influencing future regulatory decisions.

FIL, the native cryptocurrency of the decentralized storage system Filecoin is up by 3% over the last 24 hours and is currently trading at $4.61 with a market cap of $1.9 billion. The recent up move in FIL comes despite the U.S. Securities and Exchange Commission (SEC) calling Filecoin a security.

The Securities and Exchange Commission (SEC) announced on Wednesday that it considers Filecoin's token (CRYPTO: FIL) a security. What Happened: This decision comes after Grayscale Investments launched its Grayscale Filecoin Trust in March 2021, providing investors with indirect exposure to FIL.