• Grayscale Investments received a comment letter from the SEC staff regarding Filecoin (FIL) Trust Product, stating its view that FIL meets the definition of a security under the federal securities laws.
• Grayscale responded by saying it would send out a response to the SEC staff, but is unsure about what will happen as a result.
• At press time, FIL was trading at $4.50 with a market cap of over $1 billion and had seen only slight movements in its price following the news.
SEC’s Interest in Filecoin
The United States Securities and Exchange Commission (SEC) has taken notice of Filecoin [FIL], which could be classified as a security according to an SEC staff’s comment letter sent to Grayscale Investment. The company stated that it would respond to this letter but is uncertain about what the outcome will be.
Price Movement After News
The price of Filecoin token did not seem to have been greatly impacted by this latest development. According to CoinMarketCap, at press time, FIL was trading at $4.50 with a market cap of over $1 billion and had seen only slight downward movements in its price following the news.
Coinbase Seeking Regulatory Clarity
This action comes shortly after Coinbase filed for mandamus petition seeking clear guidelines for crypto exchanges from the SEC, which refused such demands claiming that changes “takes time”.
In response to receiving this comment letter from an SEC staff on 16 May 2023, Grayscale stated that it would send out a response but is unsure about what will happen as a result; whether they take some other action or discard Filecoin Trust Product altogether remains uncertain until then.
Overall, while we are still awaiting Grayscale’s official response to this comment letter sent by an SEC staff member regarding their Filecoin (FIL) Trust Product application being deemed as potentially falling under classification of security, we can see based on current prices and market cap that there has been little impact on the coin itself as yet due to these developments.