New documents obtained by Coinbase reveal the New York Attorney General's insistence on the SEC to recognize Ethereum as a security, highlighting the complexities of cryptocurrency regulation.
Core Revelation: NY AG Urged Ethereum Security Status
The documents show that during the KuCoin case in 2023, the New York AG explicitly urged the SEC to declare Ethereum a security. This is significant as the SEC has historically avoided making clear public statements regarding Ethereum's status under U.S. law.
The KuCoin Case and NY AG’s Perspective
In its lawsuit against KuCoin, filed in March 2023, the NY AG claimed that KuCoin operated as an unregistered broker. Ethereum was listed among tokens deemed to require registration. This push aimed to solidify the NY AG’s case against KuCoin, yet the SEC did not adopt a public position in response.
SEC’s Response to NY AG's Push
The documents obtained do not indicate that the SEC issued a public statement about Ethereum's security status following NY AG's request. This continued silence reflects the ongoing ambiguity in SEC's approach to Ethereum classification.
The disclosure that the NY AG sought SEC recognition of Ethereum as a security emphasizes the complexity and uncertainty in cryptocurrency regulation, remaining a vital issue attracting market attention.
