Coinbase CFO Alesia Haas believes that “Ethereum (ETH) is not a security,” and regulators are unlikely to label it as such.
Haas shared her view on the matter during an interview with Fortune and pointed to the fact that both the SEC and the CFTC have said the same thing in the past.
The Coinbase CFO said that the classification issue stems from a lack of regulatory clarity around crypto in the US. She added:
“The core problem here is that we still do not have comprehensive crypto regulation at the federal level in the US.”
She urged for a “clear, equitable, applied regulatory framework” and said that regulatory clarity will better protect consumers and Coinbase. On the latter point, she noted clearer regulations would help Coinbase understand how to introduce compliant products in the US.
SEC subpoenas
Fortune reported on March 20 that the SEC is attempting to define ETH as a security. Some companies in the US have reportedly received subpoenas in which the SEC identifies ETH as a security based on its shift to proof-of-stake, according to three anonymous sources.
According to sources, the SEC is behind the recent inquiry launched into the Ethereum Foundation by an unknown state authority.
The companies and the regulator have not confirmed the subpoenas or probe.
Ethereum’s status as a security — or commodity — is critical because it could affect which products are offered in the US.
The status of ETH is expected to impact whether spot Ethereum ETFs are treated similarly to spot Bitcoin ETFs. Additionally, US lawmakers have raised concerns about the ability of Special Purpose Broker-Dealers to work with ETH based on the case of Prometheum.
Coinbase itself faces an ongoing SEC case against several of its products. Though the case refers to ETH in several areas, including concerning staking, it does not explicitly allege that ETH is a security.
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