Grayscale Investments Hires Ex-US Solicitor General

Firm adds muscle to its legal counsel before SEC rules on its bitcoin ETF application

article-image

Donald B. Verrilli, Jr., former Solicitor General of the United States | Source: Embassy of Italy in the US/"21" (CC license)

share

key takeaways

  • Donald B. Verrilli Jr. was US solicitor general from 2011 to 2016 and was previously deputy counsel to President Barack Obama
  • The SEC is set to rule on Grayscale’s application to convert its bitcoin trust to an ETF next month

Grayscale Investments is bolstering its legal team as the SEC weighs whether to allow the crypto-focused asset manager to convert its bitcoin trust to an ETF.

The company hired Donald B. Verrilli, Jr. as a senior legal strategist to work alongside Grayscale’s in-house counsel and its attorneys at Davis Polk & Wardwell, Grayscale wrote Tuesday in a series of tweets

“We want to ensure that we have the strongest possible team of legal minds ready to support our BTC ETF application,” Grayscale tweeted. “He is one of the nation’s most experienced attorneys with a deep understanding of legal theory, administrative procedure, and the practical matters of working with the judiciary branch.”

Verrilli was the 46th solicitor general of the United States, from 2011 to 2016. He previously served as deputy counsel to President Barack Obama and as an associate deputy attorney general in the US Department of Justice. 

Before working for the government, he was a partner at law firm Jenner & Block where he co-chaired the firm’s Supreme Court practice.

The SEC, which has not yet approved an ETF that would invest directly in bitcoin, is set to rule on Grayscale’s application for such a product next month. 

The asset manager has asked the agency for approval to morph its Grayscale Bitcoin Trust (GBTC), which has roughly $20 billion in assets, to an ETF. 

Verrilli has argued more than 50 cases before the US Supreme Court, including several that dealt directly with Administrative Procedure Act (APA) violations, according to Grayscale.

Attorneys for Davis Polk & Wardwell previously argued to the SEC that the securities watchdog’s decision to approve a futures-based bitcoin ETF and not a spot ETF is “arbitrary and capricious” — and therefore in violation of the APA.

Grayscale Chief Legal Officer Craig Salm said in April that the bitcoin ETF landscape is “unfair and discriminatory against GBTC shareholders and all of the other US investors looking for an accessible and efficient way to gain their bitcoin exposure.” 

Earlier that month, Grayscale CEO Michael Sonnenshein doubled down on previous comments that the company would consider suing the agency if it denies its proposed conversion.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US

article-image

Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said