According to Bitcoin News, the U.S. Court of Appeals for the District of Columbia Circuit has overturned the SEC's exemption of the MIAX Exchange's SPIKES futures, stating that the decision was "arbitrary and capricious." This ruling may be connected to the legal battle between Bitcoin ETFs and Grayscale and the SEC.



As reported by Bloomberg Law, the D.C. Circuit Court stated on Friday that an SEC order exempting certain stock volatility futures from a definition that would impose higher taxes and other requirements in order to promote competition with another index was arbitrary and capricious.



Chief Judge Sri Srinivasan of the Appeals Court remarked that the SEC failed to adequately explain its reasons for exempting futures contracts based on the SPIKES index from the definition of security futures and failed to consider an important aspect of the issue. Without the exemption, SPIKES index futures would be classified as "security futures" rather than just "futures."