Paul Grewal, the chief legal officer at Coinbase, has advocated for the approval of Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), stating that there are no compelling reasons for rejection.
In a recent post on X, Grewal highlighted Ethereum’s significant adoption since its inception in 2015 and its integral role within the cryptocurrency ecosystem. He emphasized that Ethereum has long been treated as a commodity rather than a security by both the SEC and the Commodity Futures Trading Commission (CFTC), with federal courts consistently affirming its non-security status.
Grewal referenced past statements from SEC officials, including Director of Corporate Finance William Hinman’s remarks in 2018 and Chair Gary Gensler’s congressional testimony before assuming his role at the commission. Both officials indicated a similar stance on Ethereum’s regulatory classification.
According to Grewal, Ethereum has met the criteria of the Howey test, which defines securities, and has been subject to consistent oversight, including listing on CFTC-regulated futures exchanges since 2021.
Given this regulatory clarity, Grewal urged the SEC not to impose unnecessary barriers to approving spot Ethereum ETFs, warning that doubts about Ethereum’s status could undermine investor confidence and contradict established precedent.
His comments follow the SEC’s decision to delay its verdict on VanEck’s Ethereum ETF application until May 23, with a request for public comments. Similar postponements have occurred for other Ethereum ETF proposals from prominent firms like Franklin Templeton, BlackRock, Fidelity, and Invesco with Galaxy.
Grewal’s advocacy reflects the growing interest in Ethereum ETFs among investors and industry stakeholders, highlighting the importance of regulatory clarity for the broader adoption of digital assets in traditional financial markets.
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