Coinbase’s Chief Legal Officer, Paul Grewal, has voiced serious concerns over the SEC’s handling of Ethereum. He posted an email document from 2024 which shows that the agency continued probing Ethereum’s legal status even after approving Ethereum exchange-traded funds (ETFs).
The findings came from the SEC’s FOIA (Freedom of Information Act) Reading Room, where internal communications were recently made public. The emails, dated April 17, 2024, show that SEC Chair Gary Gensler called an “impromptu” meeting about Ethereum ETPs. This happened just weeks before ETH ETFs were officially approved in May.
The email trail begins with SEC staffer Jorge Tenreiro informing Gregory Smolar that Gensler had called the meeting. Smolar then forwarded the email to Gurbir Grewal, the SEC’s Director of Enforcement, and wrote, “FYI from Jorge. Gary called a meeting. I’ll update the talking points. Jorge is available tonight if you want to talk.”
These communications demonstrate how urgently the SEC was handling the situation. It’s possible that officials’ late availability and revision of talking points reflect their continued concerns about Ethereum’s situation.
Grewal noted that while the SEC has approved Ethereum ETFs, it still hasn’t clearly established whether Ethereum is a commodity or a security. This uncertainty places the crypto industry in a regulatory gray area that has lasted for years.
Many users are pointing out that the SEC’s actions seem contradictory. One user said, “The SEC’s contradictory actions expose the agency’s chaotic regulatory approach.” Another noted, “Approval of ETH ETFs while still investigating raises questions about regulatory consistency.”
People are calling for clearer rules and more openness from the SEC about how it makes decisions regarding crypto regulations. Some also suggest the SEC might be hiding important information, with one user asking, “How can the reader make an informed objection regarding redacted content, without it being labeled?”
Also Read: BlackRock’s IBIT Bitcoin ETF Hits $70B, Faster Than Any ETF Ever
