Grayscale: SEC staff believe Filecoin ‘meets the definition of a security’

Securities and Exchange Commission staff believe Filecoin "meets the definition of a security under the federal securities laws,” the commission told Grayscale Investments in a comment letter.

“Grayscale received a comment letter from the SEC staff stating its view that the trust’s underlying asset, FIL, meets the definition of a security under the federal securities laws,” Grayscale said in a statement. 

SEC staff also requested Grayscale seek the withdrawal of its registration statement for Filecoin Trust.

Grayscale pushed back on the characterization. SEC staff opinions do not reflect the official stance of the commission. Commissioners vote on enforcement actions based on recommendations provided by staff. 

“Grayscale does not believe that FIL is a security under the federal securities laws and intends to respond promptly to the SEC staff with an explanation of the legal basis for Grayscale’s position,” Grayscale said. “Grayscale cannot predict whether the SEC staff will be persuaded that Grayscale’s position is correct.”