Coinbase Chief Legal Officer: ETH is a commodity, not a security, and the U.S. SEC has no sufficient reason to reject a spot ETF

ChainCatcher news, Coinbase Chief Legal Officer paulgrewal.eth stated on social media that millions of Americans hold ETH. Since its launch in 2015, ETH has been crucial to the cryptocurrency space. ETH is a commodity, not a security, which has been the stance of the U.S. Securities and Exchange Commission (SEC) for years. The SEC has no sufficient reason to reject the ETH ETP application. The reasons and statements cited are as follows:

• SEC Corporate Finance Director Hinman has explicitly stated that ETH is not a security;
• Before serving as SEC Chairman, Gary Gensler testified in Congress that ETH is not a security;
• The CFTC and federal courts have consistently confirmed that ETH is a commodity;
• ETH futures contracts began trading on CFTC-regulated futures exchanges in 2021;
• The Howey test cannot determine the status of ETH;
• Even if the Howey test is applied, ETH completely fails to pass that test.