Paul Grewal, chief legal officer at Coinbase, said that the SEC had no reason to deny applications for an Ethereum ETF.
Grewal, in his X Post, revealed crucial facts about Ethereum. This included its adoption in millions of American households since 2015, and its central role within the crypto ecosystem.
According to Coinbase’s lawyer, the SEC is treating Ethereum (ETHFor many years, ) was viewed as a product, and not a securities. The CFTC Federal courts unanimously confirm that this asset is a federal asset.
Coinbase‘s lawyer referred to statements made by the agency’s director of corporate finance, William Hinman, in 2018. He also mentioned Gary Gensler’s address to Congress, before being appointed as the head of SEC. Gensler expressed a similar view in his remarks.
Grewal reminded that Ethereum has to pass the Howey test which determines securities. Grewal emphasized the consistency of asset oversight and its inclusion on CFTC-regulated Futures Exchanges beginning in 2021.
Grewal, in light of established regulations Grewal urges the SEC Not to create unnecessarily barriers for the approval of spot Ethereum ETFs. He said that questions about ETH’s regulatory status are contrary to a well-established precedent, and may undermine investor trust.
“Digital assets like ETH that do not involve an ongoing contractual obligation related to a business enterprise are not “Investment contracts” or otherwise “securities.”
Paul Grewal, Coinbase Chief Legal Officer
Grewal made the comment in response to a decision by regulators on March 20, to postpone VanEck: the final verdict Ethereum ETF application. The Department of Transportation has extended the period for review to May 23, and invited public comment. The Commission reached the same conclusions in previous years based upon similar proposals.
Franklin Templeton and BlackRock are among the other participants in the race for an ETF based ETH. Fidelity is also involved, as well as Invesco, with Galaxy.
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Source: crypto.news