The U.S. Securities and Exchange Commission (SEC) is currently soliciting public comments on Grayscale Ethereum Trust’s (ETHE) application to convert into a spot ETF. In response, Coinbase has submitted a 27-page comment letter today, meticulously outlining the legal, technical, and economic reasons why the SEC should approve it.
Coinbase’s Chief Legal Officer, Paul Grewal, addressed the matter in a post on X, stating that Ethereum’s proof-of-stake mechanism possesses significant governance capabilities and exhibits strong characteristics in terms of ownership concentration, consensus, liquidity, and governance, thereby reducing the risks of fraud and manipulation. From a market perspective, ETH’s trading market is equally flexible as BTC, so it makes no sense to approve BTC while rejecting ETH.
In conclusion, Paul Grewal expressed that Coinbase is committed to advocating for SEC to make informed regulatory decisions that support innovation and foster a transparent, secure, and inclusive financial ecosystem in the rapidly evolving cryptocurrency landscape.
