Grayscale's lawyer sends a letter to the SEC: It has no right to impose a "suspension" order on GDLC's ETF conversion

On July 11, Davis Polk & Wardwell LLP, representing Grayscale, sent a letter to the SEC on July 8, arguing that its Digital Large Cap Fund should be considered automatically approved on July 2. According to Section 19(b)(2) of the Securities Exchange Act, the SEC must make a final decision within 240 days of the publication of a proposal, otherwise the proposal will be deemed automatically approved. Although the SEC approved and then suspended the proposal on July 1, Grayscale's lawyers argue that the SEC's internal rule 431(e) cannot override the statutory deadline set by Congress. The letter pointed out that the delay has caused damage to Grayscale, the exchange, and investors, and urged the SEC to allow the fund to launch as soon as possible. [Deep Tide TechFlow]