- Coinbase CLO Paul Grewal’s detailed response supports Grayscale Ether Trust.
- An official 27-page letter outlines Coinbase’s case for ETHE approval.
- Coinbase advocates SEC approval for NYSE/Arca’s $ETHE proposal.
In a detailed 27-page letter with 96 citations, Coinbase‘s Chief Legal Officer, Paul Grewal, has shared the company’s perspective on the proposed Grayscale Ether Trust ($ETHE) Exchange Traded Product (ETP). The letter encompasses legal, technical, and economic considerations, making a compelling case for approval.
Grewal emphasizes a fundamental point: Ethereum (ETH) is not a security. Drawing on market treatment and regulatory history, both before and after the Merge, he asserts that ETH has consistently been regarded as a commodity by the SEC, the CFTC, and the broader market.
Highlighting the strength of Ether’s Proof of Stake (PoS) governance, Grewal points to robust characteristics across ownership concentration, consensus, liquidity, and governance. These factors collectively mitigate risks related to fraud and manipulation, providing a strong foundation for considering ETHE as an ETP.
Economically, the letter asserts that ETH stands on equal footing with Bitcoin (BTC) in meeting the Commission’s standard for ETP approvals. The resilience demonstrated by ETH supports the case for regulatory approval.
Coinbase expresses unwavering commitment to fostering innovation and building a transparent, secure, and inclusive financial ecosystem. The letter underscores the importance of continued dialogue, research, and informed regulatory decisions in the rapidly evolving cryptocurrency landscape.
To delve deeper into Coinbase’s support for the NYSE/Arca proposal and their encouragement for the SEC to approve $ETHE, interested parties are invited to read the full letter and explore the supporting data provided by Coinbase. The comprehensive analysis aims to contribute to an informed decision-making process in the evolving crypto regulatory environment.
