Coinbase, a prominent cryptocurrency exchange, has officially addressed the Securities and Exchange Commission (SEC) regarding the suggestion for a spot Ethereum Exchange-Traded Fund (ETF). Paul Grewal, the Chief Legal Officer of Coinbase, stated on social media platform X that the company has submitted a detailed 27-page response with 96 citations in support of the approval of the proposed Grayscale Ether Trust (ETHE) ETP. Coinbase’s main argument is based on categorizing ETH as a commodity instead of a security. Grewal’s statement highlights the common understanding among regulatory agencies and market players that Ethereum (ETH) is considered a commodity rather than a security, both prior to and following the Merge. This categorization is in accordance with the required legal structure for the SEC to review an ETF linked to ETH, following the precedent set by previous approvals of Bitcoin ETFs. Coinbase is using the SEC’s approval of Bitcoin ETFs as a basis for supporting similar regulatory treatment for Ethereum. Grewal suggests that Ethereum is just as robust as Bitcoin according to economic indicators, meeting the Commission’s criteria for ETP approval. This emphasizes the comparable strength and maturity of both Ether and Bitcoin in the market. This comparison is a reminder to the SEC about the reasoning behind past decisions and proposes a comparable strategy for ETH. Additionally, check out the related article on Franklin Templeton entering the Ethereum ETF arena. Security measures for Ethereum’s technology and operations.