Coinbase responds to the SEC regarding Grayscale's Ethereum spot ETF: emphasizes that ETH is not a security and has strong governance features

ChainCatcher news, Coinbase Chief Legal Officer Paul Grewal stated on X that Coinbase has responded to the SEC's request for comments on Grayscale's conversion of its Ethereum Trust (ETHE) to a spot ETF. Grewal stated that ETH is not a security. In fact, both before and after the merge, the SEC, the Commodity Futures Trading Commission (CFTC), and the markets have not regarded ETH as a security, but rather as a commodity. Furthermore, Ethereum's Proof of Stake demonstrates significant governance capabilities, exhibiting robust characteristics in ownership concentration, consensus, liquidity, and governance, which reduces the risks of fraud and manipulation.

Additionally, economics suggests that ETH is as resilient as BTC in meeting the committee's ETP approval standards.