In a recent exposition, Grewal provided key insights into Ethereum, underlining its significant adoption across millions of Americans since its inception in 2015 and its pivotal role within the cryptocurrency domain.
As per the statements from the legal counsel at Coinbase, Ethereum (ETH) has been classified as a commodity by the SEC for several years. This designation has been consistently affirmed by both the Commodity Futures Trading Commission (CFTC) and federal courts.
Referring to remarks made by William Hinman, the former director of corporate finance at the SEC, in 2018, and echoing sentiments expressed by SEC Chair Gary Gensler prior to his appointment, Coinbase‘s lawyer emphasized the regulatory stance towards Ethereum.
Grewal emphasized that Ethereum must satisfy the criteria outlined in the Howey test, which delineates securities. He highlighted the asset’s consistent oversight, including its listing on CFTC-regulated futures exchanges commencing in 2021.
In light of the established regulatory framework, Grewal urged the SEC to refrain from erecting unnecessary hurdles in approving spot Ethereum Exchange-Traded Funds (ETFs). He underscored that uncertainties surrounding ETH‘s regulatory status are at odds with longstanding precedents and could potentially erode investor confidence.
Grewal’s remarks come in the wake of the SEC’s decision on March 20 to defer a ruling on VanEck’s Ethereum ETF application, extending the review period until May 23 and soliciting public feedback. This decision echoes previous actions taken by the Commission regarding analogous proposals.
Furthermore, prominent financial institutions such as Franklin Templeton, BlackRock, Fidelity, and Invesco, in collaboration with Galaxy, are actively vying to launch ETFs based on ETH, signaling growing interest and competition in this domain.
