As per an announcement from Grayscale Investments on Wednesday, the U.S. Securities and Exchange Commission has identified Filecoin’s FIL token as a security, leading to its request for Grayscale to withdraw its Filecoin Trust application. Grayscale had launched its Grayscale Filecoin Trust in March 2021, providing investors with indirect exposure to FIL. Grayscale had voluntarily filed Form 10 to obtain SEC reporting status, following its outlined product lifecycle. However, in a letter addressed to Grayscale, the SEC stated that FIL qualifies as a security under federal securities laws, mandating the withdrawal of the application. Although Grayscale maintains that FIL is not a security under federal securities laws, the company has committed to responding promptly to the SEC staff with an explanation of its legal stance.