Coinbase strongly supports Ethereum! It states, "ETH is not a security, it's a commodity!"

Amidst ongoing discussions regarding the regulatory status of Ethereum (ETH), Coinbase's Chief Legal Officer, Paul Grewal, has voiced support for the cryptocurrency, arguing against its classification as a security by the U.S. Securities and Exchange Commission (SEC).

In a detailed post on X, Grewal urged the SEC not to impede the approval of Ethereum Exchange-Traded Funds (ETFs), highlighting Ethereum's established recognition as a commodity by both the SEC and the Commodity Futures Trading Commission (CFTC).

Grewal Advocates for Ethereum's Regulatory Clarity Amid Misinformation and SEC Scrutiny

Grewal emphasized the misinformation surrounding Ethereum, pointing out its significant role in the cryptocurrency ecosystem since its inception in 2015. He stressed that millions of Americans have invested in Ethereum, underscoring its status as a commodity rather than a security.

Citing previous statements from key SEC figures, including former SEC Chairman Gary Gensler and SEC Corporate Finance Director Hinman, Grewal highlighted their acknowledgment that Ethereum is not a security. Additionally, he referenced consistent rulings from federal courts and the CFTC confirming Ethereum's commodity status.

Grewal expressed concerns over potential SEC rejection of Ethereum ETF applications, emphasizing that such action would contradict established regulatory precedents. He urged the SEC not to undermine Ethereum's regulatory status and the trust of investors, asserting that Americans deserve clarity and consistency in regulatory decisions.

Coinbase CEO Advocates for Ethereum (ETH) as Commodity Amid SEC Turf War: Implications for ETF Approval

Brian Armstrong, founder and CEO of Coinbase, asserts that Ethereum (ETH) should be classified as a commodity under U.S. federal law, akin to Bitcoin (BTC). This classification holds significant implications as the U.S. Securities and Exchange Commission (SEC) deliberates over multiple applications for Ethereum Exchange-Traded Funds (ETFs), having previously approved ETFs for Bitcoin earlier this year.

In a recent Bloomberg interview, Armstrong contends that the SEC should swiftly approve Ethereum ETFs, given their approval of Bitcoin ETFs. However, Armstrong acknowledges a conflict among federal agencies regarding Ethereum's classification, which could complicate the application process.

Armstrong states, "I think the Ethereum ETFs very clearly should be approved, and everybody deserves equal treatment under the law. Unfortunately, some of this crypto stuff has gotten a little bit politicized at our federal agencies. And there’s unfortunately this kind of turf war between the CFTC (U.S. Commodity Futures Trading Commission) and the SEC about whether is it a commodity, is it a security, etc."

While SEC Chair Gary Gensler has not explicitly stated his position on whether ETH is a security, he has suggested that many digital assets besides Bitcoin could be considered securities. In contrast, the CFTC has indicated that ETH should be classified as a commodity.

Armstrong predicts that the resolution of Ethereum's classification may ultimately rest with the courts, similar to the process for Bitcoin ETFs. He references a court ruling in August, where the SEC's rejection of Grayscale's application for a Bitcoin ETF was deemed "arbitrary and capricious." Gensler cited this ruling as influential in the subsequent approval of spot Bitcoin ETF applications.

Armstrong concludes, "If it does get delayed unfairly, I think the industry will have to follow a similar path to what happened with Bitcoin, which is they’ll essentially go to the courts and the courts will compel the regulators to follow the rules, follow the law and give equal treatment under the law. So it may take additional effort, but I think they really should be approved right away."