FIL Up 3% Despite US SEC Designating Filecoin As A Security

The US Securities and Exchange Commission (SEC) has asked Grayscale to withdraw filing for the Grayscale Filecoin Trust, calling FIL a security. FIL, the native cryptocurrency of decentralized storage system Filecoin, has risen 3% in the past 24 hours and is trading at $4.61 at the time of writing with a market cap of $1.9 bln.

Previously, crypto asset manager Grayscale voluntarily filed a Form 10 to register a trust. But the SEC asked Grayscale to withdraw the filing, calling Filecoin a security. In a press release on Wednesday, Grayscale said it had received a letter from a top securities regulator noting that the FIL «meets the definition of a security.»

In clarifying its position, Grayscale stated that it does not consider FIL to be a security under federal securities laws. The company is trying to respond to the SEC by explaining the legal basis for its position. However, Grayscale added that they cannot accurately predict whether they can convince the SEC to reconsider. But Grayscale will «seek accomodation» to register the trust.

Image: Binance Academy

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