CEX responds to the U.S. SEC about Grayscale's Ethereum spot ETF: Emphasizing that ETH is not a security, it possesses strong governance features
2024/02/22 01:07
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Chief Legal Officer Paul Grewal stated on X that Coinbase has responded to the U.S. SEC's request for comments on Grayscale
Ethereum Trust (ETHE) converting to a spot ETF. Grewal said, ETH is not a security. In fact, before and after the merger, neither the Securities and Exchange Commission (SEC), Commodity
Futures Trading Commission (CFTC), nor the
market considered ETH as a security but rather as a commodity. Secondly, Ethereum's "Proof of Stake" has obvious strong governance capabilities, showing robust characteristics in terms of ownership concentration, consensus, liquidity and governance which reduces risks of fraud and manipulation.
Furthermore, economics shows that in meeting the committee's ETP approval standards, ETH is as resilient as BTC.
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