The U.S. Securities and Exchange Commission (SEC) has already recognized that Ethereum (ETH) is not a security, according to Paul Grewal, chief legal officer at Coinbase. This observation came after the SEC reached a settlement with trading platform eToro.
Settlement with eToro
The SEC reached a settlement with eToro, stipulating that the platform should stop offering all crypto tokens for trading apart from Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). This step is the strongest signal yet that the SEC might view Ethereum as a non-security.
Criticism from Coinbase
Coinbase's chief counsel criticized the SEC for not explaining the rationale behind classifying Bitcoin and Ethereum as non-securities, while other tokens are viewed as securities. "There is no plan, no framework, no logic, no due process, and certainly no respect for the law," he noted.
Expert Warnings
It is still unclear whether Ethereum is entirely free from legal jeopardy. Jake Chervinsky, chief legal officer at Variant, warned that settlements do not establish new legal precedents. "We may see more like eToro from the SEC and other agencies this month, all with orders pretending to establish new precedent. None do," he said in a social media post.
While the settlement with eToro is a significant step, it does not mean a definitive resolution on the legal status of Ethereum. Experts caution that interpretations of such settlements need to be approached carefully.
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