The U.S. Securities and Exchange Commission (SEC) has been under major pressure from US lawmakers not to proceed ahead with the approval of the spot Ethereum ETF. The chances of Ether ETF approval have been waning as the SEC eyes securities tag for the altcoin. However, industry players have come in support of Ethereum amid these developments.
Coinbase Executive Pushes for Spot Ethereum ETF
Coinbase’s Chief Legal Officer, Paul Grewal, addressed ongoing speculation and misinformation surrounding Ethereum (ETH) amid anticipation of a decision on Ethereum Exchange-Traded Products (ETPs). Grewal emphasized key facts about ETH, highlighting its widespread ownership among millions of Americans since its inception in 2015 and its integral role in the cryptocurrency ecosystem.
He reiterated that ETH is recognized as a commodity by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), with senior SEC officials and former Chair Gary Gensler affirming its non-security status.
Grewal underscored that ETH’s classification is distinct from the Howey test traditionally used to determine securities. He also noted that ETH does not constitute an investment contract or security under this framework. He emphasized the consistency of regulatory treatment for ETH, including its listing on CFTC-regulated futures exchanges since 2021.
In light of these established regulatory positions, Grewal urged the SEC not to create unnecessary obstacles for ETH ETP applications, emphasizing that questioning ETH’s regulatory status would contradict long-standing precedent and undermine investor confidence. He emphasized the significance of upholding established legal principles to benefit all stakeholders involved.
SEC Needs More Time To Evaluate
On Wednesday, March 20, the US SEC announced a postponement in its decision on the approval of the VanEck spot Ethereum ETF. The new deadline for a ruling has been extended to May 23, 2024. This delay follows a series of similar extensions for other Ethereum-based ETF applications, signaling a cautious approach to regulation.
According to recently disclosed SEC documents, the agency has opted to grant additional time for the assessment of VanEck’s proposal for a spot Ethereum ETF. The extension aims to allow the commission to conduct a comprehensive review of the proposed rule change and address any potential concerns that may arise during the evaluation process.
Read More: Coinbase Executive Defends Ether Against the SEC’s Attack on Ethereum ETFs