SEC May View Ethereum As Non-Security, Coinbase Lawyer Claims

Coinbase’s top lawyer, Paul Grewal, says the U.S. Securities and Exchange Commission (SEC) has admitted Ethereum is not a security. This claim follows the SEC’s recent settlement with the trading platform eToro.

Source: Paul Grewal, X Post

The deal allows eToro to trade only Bitcoin, Bitcoin Cash, and Ethereum. This move hints that the SEC might view Ethereum differently from other crypto tokens. SEC Chair Gary Gensler has often dodged questions about Ethereum’s status as a commodity or security. The eToro settlement provides the most evident sign of how the SEC might see Ethereum.

Grewal criticizes the SEC for treating Bitcoin and Ethereum differently from other tokens. He argues the agency can’t explain its reasoning. “There’s no plan, framework, logic, due process, and respect for the law,” Grewal states.

However, Ethereum’s legal status remains uncertain. Jake Chervinsky, chief legal officer at Variant, warns that settlements don’t create new laws. “We may see more deals like eToro’s from the SEC this month,” he says. “None of them set new legal rules.”

The crypto world watches closely, but Ethereum’s position remains unclear. This settlement offers hope, but the debate continues. The SEC’s approach to crypto regulation has faced growing criticism. Many in the industry argue for more explicit rules and fair treatment of different tokens.

Ethereum Regulatory Limbo: Coinbase, SEC, and the Crypto Conundrum

Coinbase itself faces an ongoing legal battle with the SEC. The exchange denies allegations that it offers unregistered securities. Grewal’s comments reflect the company’s frustration with what it sees as inconsistent enforcement.

The eToro settlement might signal a shift in the SEC’s stance, but experts urge caution. Ethereum’s status remains open to interpretation without official guidance or court rulings.

This situation highlights the complex regulatory landscape for cryptocurrencies. As the market evolves, regulators need help to keep pace. The lack of clear rules creates uncertainty for investors and companies in the crypto space.

For now, the industry waits for more definitive action from the SEC or lawmakers. Until then, the legal status of Ethereum and many other cryptocurrencies remains in a grey area.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risk.