SEC's ETH Spot ETF Approval Rekindles Debate over Ethereum's Security Status
CryptoNewsTerminal Staff25 May, 2024
SEC's ETH Spot ETF Approval Rekindles Debate over Ethereum's Security Status
The recent approval of eight Ethereum (ETH) spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has reignited the debate over whether Ethereum is a security. Coinbase's Chief Legal Officer, Paul Grewal, believes this approval suggests that Ether is not a security. He points to the SEC's use of Form S-1, typically used for securities, in these filings. Coy Garrison, a former counsel to SEC Commissioner Hester Peirce, interprets the SEC's order as confirming Ether's commodity status. He notes the SEC's reference to the fund as a "commodity-based trust." However, Ashley Ebersole of 0x Labs emphasizes that the SEC's approval does not definitively determine Ether's nature and that the SEC may still classify it as a security based on specific circumstances.
