Coinbase, a cryptocurrency exchange, has endorsed Grayscale’s proposal for an Ethereum ETF and is requesting approval from the SEC. Being the only crypto exchange on the U.S. stock exchange, Coinbase holds significant influence in the industry. The company responsible for safeguarding the Grayscale Ethereum Trust’s cryptocurrency assets submitted a comprehensive report on Wednesday, emphasizing Ethereum’s development in the market and adherence to regulations. They argued that these factors position ETH as a commodity similar to Bitcoin, stating that the market has recognized for some time that Ethereum is not a security. Top executives of the Commission have affirmed this stance multiple times in the last six years, and neither the Commission nor its employees have rejected this viewpoint, even following the merger. The cryptocurrency industry has long been advocating for clear regulations regarding the legal status of tokens and digital assets. Cryptocurrency and token issuers are frequently hesitant to classify digital assets as securities due to the potential increase in regulatory duties, legal risks from disappointed investors, and restrictions on accessing a wider international market. For example, the attributes of the Ether (ETH) market and the exchange’s collaboration with the Chicago Mercantile Exchange Inc. for surveillance sharing. CME argues that the proposed rule change should be approved for similar reasons as spot Bitcoin exchange-traded products, as stated by the Commission. Coinbase also commends Ethereum’s decentralized governance for effectively reducing the risks of fraud and manipulation. The SEC had already considered this issue and concluded that Ethereum did not meet the criteria to be classified as a security. This is due to the fact that no single entity, corporation, or organization has the power to solely dictate the network’s structure and meet investors’ expectations. This support comes at a time when there are ongoing conversations in the financial sector regarding the dangers of centralization in the Ethereum network, especially regarding spot Ethereum ETFs with staking features.