Coinbase urges SEC to approve Grayscale Ethereum spot ETF conversion application

The U.S. SEC is seeking comments on Grayscale Ethereum Trust’s (ETHE) application to convert into a spot ETF. In a 27-page comment letter, Coinbase provided the legal, technical and economic reasons why the SEC should approve the application: 1. ETH is not a security. In fact, both before and after the merger, the SEC, CFTC, and the market no longer viewed ETH as a security, but as a commodity. 2. ETH’s Proof of Stake (PoS) has obviously strong governance capabilities, showing strong characteristics in terms of ownership concentration, consensus, liquidity and governance, thereby reducing the risk of fraud and manipulation. 3. Economics shows that ETH is as resilient as BTC when it comes to meeting SEC ETP approval standards. Coinbase said it is committed to urging the SEC to make informed regulatory decisions in the rapidly evolving cryptocurrency environment, support innovation and cultivate a transparent, safe and inclusive financial ecosystem through continued dialogue and research.