• Grayscale® Filecoin Trust (FIL) has received a comment from US Securities and Exchange Commission (SEC) staff suggesting that the underlying asset of the Trust, FIL, is a security.
• Grayscale disagrees with this assessment and intends to respond promptly to explain its legal basis for its position.
• If unsuccessful, Grayscale may have to seek accommodations or dissolve the Filecoin Trust.
Grayscale’s Application for Listing of Filecoin Trust
Grayscale had applied to list the Grayscale® Filecoin Trust (FIL) (OTCQB: FILG).
SEC Suggests Filecoin is Security
The US Securities and Exchange Commission (SEC) staff then sent a letter on 16 May 2023 suggesting that FIL meets the definition of a security under federal securities laws. The SEC staff also believe that the meet the Grayscale®Filecoin Trust “meets the definition of an investment company under the Investment Company Act of 1940”.
Grayscale Disagrees With SEC’s Assessment
Grayscale does not believe that FIL is a security under federal securities laws and intends to respond promptly to explain its legal basis for this position.
Potential Consequences if Unsuccessful
If unsuccessful in convincing SEC, Grayscale may have to seek accommodations or dissolve the Filecoin Trust.
Previous Lawsuit Against SEC
In 2022, Graysdale had filed a lawsuit against SEC after agency denied application convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF).