While the expectation that Ethereum ETFs will be approved in May has decreased, and even while the SEC is now expected to not approve it in May, news has emerged that the SEC will classify ETH as a security.
While important names in the crypto market opposed the SEC's ETH classification, a reaction came from Coinbase.
At this point, Coinbase's Chief Legal Officer Paul Grewal urged the SEC not to block Ethereum ETFs, pointing out that Ethereum has been previously recognized as a commodity by both the SEC and CFTC.
Grewal, who made a long post on his X account, pointed out that there was misinformation about ETH. Grewal also emphasized that Ethereum has been purchased by millions of Americans since its inception in 2015 and has an important role in the cryptocurrency ecosystem.
Reminding once again that Etheruem is a commodity, not a security, Grewal stated that this situation is actually accepted by both the SEC and CFTC.
At this point, Grewal stated that SEC chairman Gary Gensler and former SEC members confirmed in their previous speeches that ETH is not a security.
“ While we wait for a decision on ETH ETFs, we are faced with ETH misinformation again. Okay, now let's talk about some basic facts about Ethereum.
Millions of Americans own ETH; It has been vital to crypto since its 2015 launch; and ETH is a commodity, not a security.
Old. A. Senior SEC officials said ETH is not a security, see for example, SEC Corporate Finance Director Hinman's statement.
Before becoming SEC Chairman, Gary Gensler also stated before Congress that ETH is not a security, see his statement.
Additionally, the CFTC and federal courts have consistently confirmed that ETH is a commodity.
As a result, the SEC does not have a good reason to reject ETH ETF applications. And we hope they won't try to invent one by questioning the well-established regulatory status of ETH, which the SEC has repeatedly approved. The law doesn't work that way. And Americans deserve better. “
Sigh… again with the ETH misinformation as we await a decision on ETH ETPs. Ok–let’s talk about some basic facts about Ethereum. Millions of Americans hold ETH; it has been vital to crypto since its 2015 launch; and ETH is a commodity, not a security. 1/10
— paulgrewal.eth (@iampaulgrewal) March 20, 2024
*This is not investment advice.
