- Coinbase’s CLO voices support for Consensys’ lawsuit against the SEC over Ethereum’s classification.
- Consensys aims to safeguard Ethereum’s status as a non-security.
- Paul Grewal urges the SEC to admit ETH is a commodity and quit playing games
Paul Grewal, the chief legal officer of Coinbase, has delightedly reacted to the latest lawsuit filed against the U.S. Securities and Exchange Commission (SEC). Consensys, a software development firm, lodged this lawsuit on Thursday in a district court in Texas, USA. The lawsuit accuses the SEC and five commissioners of intending to classify Ethereum as a security.
Consensys stated that the lawsuit aims to uphold Ethereum as “a vibrant and indispensable blockchain platform” and ensure continued access for developers, market participants, and institutions invested in It.
The company stressed that the SEC should not have unchecked authority to extend its regulatory reach to encompass the future of the Internet by misclassifying ETH as a security. It highlighted the SEC’s “reckless approach” as causing turmoil among developers, market participants, institutions, and nations that are either constructing or already overseeing essential systems operating on Ethereum.
Last month, the news broke that the U.S. regulator was stealthily moving to categorize ETH security by requesting financial documents from all U.S. firms that have had engagements with Ethereum. Now, Consensys seeks to preempt the SEC’s move to safeguard the interests of other ETH stakeholders.
Consensys’ bold action to file a lawsuit against the SEC has attracted widespread commendations from the crypto community. Among the prominent figures reacting to this development is the CLO of Coinbase, a firm that is in ongoing litigation with the SEC.
Grewal pointed out the widely held view that ETH is a commodity. He cited the U.S. CFTC’s agreement with this view. Accordingly, he remarked that it is time for the SEC to admit this fact and quit playing games.
“It’s time for the SEC to admit that it still knows ETH is a commodity too. No more games,” the Coinbase lawyer remarked. He expressed his appreciation to Consensys for “standing up against the SEC’s unlawful expansion of authority.”
Notably, in the complaint Consensys cited the SEC’s record of declaring ETH was not a security as early as 2018.
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