Chief lawyer of Coinbase calls on SEC to grant approval for Ethereum ETFs
The Chief Legal Officer of Coinbase, Paul Grewal, believes that the SEC has no valid reason to reject applications for an Ethereum ETF. Grewal shared important information about Ethereum, emphasizing its widespread adoption among millions of Americans since its inception in 2015 and its crucial role in the cryptocurrency ecosystem.
According to Grewal, the SEC has consistently treated Ethereum as a commodity rather than a security, a stance that has been confirmed by both the CFTC and federal courts. Grewal referred to statements made by William Hinman, the agency’s director of corporate finance, in 2018, as well as remarks made by SEC Chair Gary Gensler before he assumed his current position.
Grewal highlighted the need for Ethereum to meet the criteria of the Howey test, which determines whether an asset qualifies as a security. He pointed out that Ethereum has been subject to regulatory oversight, including its listing on CFTC-regulated futures exchanges since 2021.
Given the existing regulations, Grewal urged the SEC not to create unnecessary obstacles to approving spot Ethereum ETFs. He emphasized that doubts about Ethereum’s regulatory status go against established precedent and could undermine investor confidence.
Grewal’s comments came in response to the SEC’s decision to postpone the verdict on VanEck’s Ethereum ETF application, extending the review period until May 23 and soliciting public comments. Similar conclusions have been reached by the Commission in the past regarding similar proposals.
Other major players, such as Franklin Templeton, BlackRock, Fidelity, and Invesco with Galaxy, are also vying to launch an ETF based on Ethereum.
