Paul Grewal of Coinbase Firmly Defends the Approval of Ethereum Spot ETFs
Paul Grewal, the legal chief of Coinbase, strongly disputes the position of the US Securities and Exchange Commission (SEC) regarding the approval of Ethereum Spot ETFs. Grewal presents strong arguments, relying on Ethereum’s historical classification as a commodity and the SEC’s previous statements validating this viewpoint.
Arguments in Favor of Ethereum
According to Grewal, there is no valid reason for the SEC to reject the Ethereum Spot ETF applications. He highlights the statements made by Bill Hinman, former director of the SEC’s Division of Corporation Finance, and Gary Gensler, before he became the SEC chairman, both of whom previously acknowledged that Ethereum is not a security.
The recent comparisons between Ethereum and Bitcoin in the SEC’s case against Ripple Labs, as well as the confirmation by the Commodity Futures Trading Commission and federal courts of Ethereum’s commodity status, further strengthen this position.
The Ethereum Foundation in the Spotlight
Recently, the Ethereum Foundation, a non-profit organization based in Switzerland, removed a ‘Warrant Canary’ from its website following a confidential investigation by an unspecified state authority. This removal suggests increasing regulatory pressure, fueling speculation about Ethereum’s classification as a security, especially after the transition to a proof-of-stake consensus system with ‘The Merge’.
While Grewal and other Ethereum advocates advocate for the recognition of its distinction from traditional securities, analysts like James Seyffart from Bloomberg express concerns about the SEC using the shift to proof-of-stake as an argument to classify Ethereum as a security. This perspective could jeopardize the chances of Ethereum Spot ETF approval in the coming months.
The SEC’s stance on Ethereum and ETFs remains a topic of intense debate. Despite the optimism that still sees a possibility of Ethereum ETF approval this year, the recent decision by the SEC to delay the decision on several Ethereum spot ETF applications indicates ongoing caution. The recent amendments to the filings of Fidelity and Grayscale to include staking also complicate the situation.
