Paul Grewal, the Chief Legal Officer (CLO) of Coinbase, has become a major voice in the continuing discussion about the legal classification of Ethereum by the United States Securities and Exchange Commission (SEC), arguing in favor of the platform’s non-security status.
Broader Recognition Of Ethereum Security Nature
Taking to the X (formerly Twitter), the Coinbase CLO Paul Grewal expressed his belief in Ethereum as a commodity. According to Grewal, he knows ETH is a commodity, the entire crypto community knows this, and the Commodity Futures Trading Commission (CFTC). Thus, it is imperative that the SEC acknowledge its continued belief that ETH is a commodity and stop playing games.
He further expressed his appreciation toward Consensys for filing a lawsuit against the regulatory watchdog, opposing the illegal abuse of power by the agency.
On Thursday, Consensys claimed in its filing that the SEC has planned enforcement proceedings to regulate ETH as a security as part of a strategy to take control over the future of cryptocurrency. They also claimed that the company’s MetaMask wallet software, which prompts users to self-custody Ethereum and other cryptocurrencies, was the main target of the SEC after receiving a Wells Notice letter indicating possible regulatory action.
The filing cited a prior declaration by the agency’s head, Gary Gensler, regarding the security status of ETH. In 2018, back when Gensler was a university professor, he affirmed that ETH is sufficiently decentralized, therefore it can not be considered a security.
Consensys believes by classifying ETH as a security, the agency should not be permitted to arbitrarily extend its jurisdiction to encompass governing the future of the Internet. In addition, the firm claims the SEC is being careless with its approach, thereby causing havoc for those involved in improving or managing crucial Ethereum-based systems.
The filing read:
The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network, and for Consensys. Every holder of ETH, including Consensys, would fear violating the securities laws if he or she were to transfer ETH on the network. And the ability of anyone new to acquire ETH to use Ethereum’s repository of decentralized applications and services would be extinguished. This would bring the use of the Ethereum blockchain in the United States to a halt, crippling one of the internet’s greatest innovations.
The company’s major purpose in filing a lawsuit against the SEC is to protect access for the numerous developers, organizations, and market players that have an interest in the Ethereum blockchain, as well as to guarantee that ETH stays a dynamic and reliable blockchain platform.
Blockchain Adoption Brings Revolutionalization
Consensys aims to increase the use of blockchain platforms like Ethereum which they believe will contribute to improving and reshaping upcoming generations to govern several systems in the world. These include social, political, economic, and technological systems, making the world more transparent, inventive, and equal. However, this promising vision is now under challenge from the SEC.
It is noteworthy that Ethereum offers permission-free human ingenuity feature, not just Permission-free information. As a result, Consensys has stressed the need for transparency, urging those who are against the SEC’s regulatory measures to speak up.
Featured image from iStock, chart from Tradingview.com
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