In a recent development, the United States Securities and Exchange Commission (SEC) has expressed its belief that Filecoin’s native token, FIL, falls under the classification of a security. Crypto asset manager Grayscale Investments disclosed this information following its application submission to launch a Filecoin Trust product, which aimed to provide investors with indirect exposure to FIL.
On May 16, the SEC staff issued a comment letter to Grayscale, cautioning them that FIL meets the definition of a security according to federal law. As a result, the regulator requested Grayscale to withdraw its application for the Filecoin Trust product.
In response, Grayscale has asserted that it does not consider FIL to be a security under federal securities laws and intends to provide the SEC with an explanation to support its position. Grayscale, however, acknowledges that it cannot predict whether the SEC will accept its reasoning and may either explore options to seek accommodations for the Trust’s registration or be compelled to dissolve the Trust entirely.
