On March 7th, a working group of presiding judges listened attentively to the oral argument of the Securities and Exchange Commission (SEC) in the lawsuit filed by GrayScale Investments. GrayScale has tested SEC's instructions and does not allow GrayScale to apply for the creation of BTC (BTC) spot traded exchange traded funds (ETF). The SEC issued the directive on July 6th.

Former Attorney General Donald Verrilli Jr. Representing GrayScale and SEC's high-end counsel Emily Parise spoke on behalf of SEC before Chief Justice SRI SRINVAS of the Court of Appeal and his presiding judges Neomi Rao and Harry Edwards in Washington, D.C. Verrilli said at the beginning:

"the nature of the order depends on the fact that it runs counter to the SEC's previous directive to signal bitcoin futures ETP, which creates the same risk of fraud and manipulation and the same CME regulatory regime to prevent potential risks."

SEC has granted Teucrium, ProShares, Vaneck and Valkyrie investment and wealth management products associated with BTC futures trading.

Parise fabricates lies that such products cannot be generalized with GrayScale's advice, because the regulatory regime is different, and because the spot market behind the proposed ETF property is "riddled with holes and will not be regulated", unlike the CME, which is regulated by the Commodity Futures Trading Federation (CFTC).

Parise then refutes the view that BTC spot trading and futures markets are together 99.9 per cent of the time, stressing that it is not clear at this stage whether the futures market is technologically leading the spot market when affected by fraud and manipulation, or vice versa.

For the proposed grayscale commodities, the Chicago Mercantile Exchange's supervision will become the spot market regulatory agents. In addition, 99.9% of the correlations are based on "once a day" futures prices, which are irrelevant to intra-day prices, Parise added.

The judges asked more questions to Parise than to Verrilli, causing commentators in the login password community to see their trends as good for GrayScale. For example, they prescribe the differences between products that respond to Teucrium's SEC approval and those of GrayScale, and why spot trading and futures markets are vulnerable to fraud and manipulation.