Coinbase Presents Case for Grayscale Ethereum ETF Approval to SEC

Coinbase has made a public appeal for the U.S. Securities and Exchange Commission (SEC) to greenlight Grayscale’s bid to introduce spot Ethereum (ETH) ETF. Paul Grewal, the chief legal officer at Coinbase, argues that transforming Grayscale’s ETH trust into an ETF is a necessary step forward.

In a recent interaction as part of the SEC’s review process, Coinbase underscored the need for approval, providing the regulator with a comprehensive analysis that supports Grayscale’s Ethereum ETF. Grewal emphasized the robust governance of Ethereum’s Proof of Stake, highlighting its ability to minimize fraud and manipulation risks due to its solid structure in ownership concentration, consensus mechanisms, liquidity, and governance protocols.

“Ether’s Proof of Stake has demonstrably strong governance that exhibits robust characteristics across ownership concentration, consensus, liquidity, and governance, mitigating risks of fraud and manipulation,” stated Paul Grewal.

Coinbase stands firm on its commitment to fostering innovation and working towards a financial ecosystem that is both secure and inclusive. Grewal pointed out that the company is actively engaged in discussions and research to find regulatory pathways that support the crypto industry’s growth.

The SEC, however, has delayed its decision on Grayscale’s application for an Ethereum ETF until March 10. This postponement follows remarks from SEC Chairman Gary Gensler, who previously indicated that the approval of a Bitcoin (BTC) spot ETF was confined to the Bitcoin cryptocurrency alone. This decision also impacts other applications, including BlackRock’s proposal for a spot crypto ETF.