Suing the U.S. Securities and Exchange Commission (SEC) to learn why the regulator rejected Bitwise's bitcoin exchange-traded fund filing is a possibility, according to Chief Compliance Officer Katherine Dowling.
Dowling told CoinDesk TV's "All About Bitcoin" program the company has had active and positive dialogue with the regulatory agency since it rejected Bitwise’s spot bitcoin ETF proposal in 2019. Still, Bitwise is considering litigation.
If it goes to court, Bitwise will be following the lead of CoinDesk sister company Grayscale Investments, whose spot bitcoin ETF application was denied by the SEC several weeks ago. The company promptly filed suit in the federal district court in Washington, D.C.
“This type of litigation is really about answering technical questions,” Dowling said about any possible Bitwise lawsuit. “I would not put it off the table.”
As a former federal prosecutor for the U.S. Attorney's Office for a decade, Dowling said she does not think that “litigation is ever the most efficient approach.”
However, she does see litigation as a potential way crypto players like Bitwise can get clarity from regulators into their thinking.
“I think it’s more productive if you can engage in a dialogue, figure out what the obstacles are and answer those questions together in a productive manner,” she said. “But that isn’t always the approach that is going to work.”
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