SEC Has โNo Good Reasonโ to Deny Ethereum ETF Approvals, Says Coinbase CLO
Amid ongoing speculation surrounding the prospect of spot Ethereum exchange-traded fund (ETF) approvals in the United States, Coinbase Chief Legal Officer Paul Grewal stated that the Securities and Exchange Commission (SEC) has โno good reasonโ to deny the ETF applications. Grewal argued that:
- The SECโs position on Ethereumโs status as a security has been consistent for years.
- Senior SEC officials have previously suggested that ether is not a security.
- Comparisons between ether and bitcoin in recent legal cases and the confirmation of ether as a commodity by federal courts support the argument against classifying ether as a security.
Grewal emphasized that millions of Americans hold ETH, which has been vital to the crypto industry since its launch in 2015. He also stated that ETH is a commodity, not a security, and the SEC should not question its long-established regulatory status. Grewal further noted that the SECโs Howey Test, used to determine whether an asset is a security, does not apply to digital assets like ether.
Ethereum Foundation Removes โWarrant Canaryโ Following Enquiry from State Authority
The Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, removed a โWarrant Canaryโ from its website after receiving a voluntary and confidential enquiry from an undisclosed state authority. The โWarrant Canaryโ indicated that the foundation had not been contacted by any agency requiring non-disclosure. The removal of this image and text raised questions about potential regulatory scrutiny of Ethereum.
Differing Views on Etherโs Status and Spot ETF Approvals
The SECโs investigation into Ethereum has led to differing opinions on etherโs status and the chances of spot ETF approvals:
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