SEC Junks Grayscale’s Filecoin Trust Application Over ‘Security’ Label

Filecoin, a decentralized storage platform based on blockchain technology, has recently found itself entangled in a regulatory debate as the United States Securities and Exchange Commission (SEC) raises concerns over its classification as a security. Grayscale Investments, a prominent digital asset management firm, has been instructed by the SEC to withdraw its application for a Filecoin Trust, citing potential securities implications.