Coinbase founder and CEO Brian Armstrong came out in support of the leading altcoin Ethereum, which is in the grip of the SEC. Armstrong says Ethereum, like Bitcoin, is a commodity under US federal law.
Coinbase CEO: Leading altcoin Ethereum is a commodity, that’s clear!
This classification is important as the U.S. Securities and Exchange Commission (SEC) evaluates various applications to launch ETH exchange-traded funds (ETFs). cryptokoin.comAs you follow from, the SEC approved Bitcoin ETFs earlier this year.
Coinbase CEO Brian Armstrong says in a new Bloomberg interview that the SEC should approve ETH ETFs without delay, given that they approved BTC ETFs. But according to Armstrong, there is a disagreement among federal agencies over the classification of ETH. Institutions are debating whether Ethereum is a security or not. Armstrong notes that this will likely make the application process more difficult. In this context, Armstrong makes the following statement:
I think Ethereum ETFs should be approved very clearly. Additionally, everyone deserves equal treatment under the law. Unfortunately, some of this crypto issue has become a bit politicized within our federal agencies. Unfortunately, the CFTC (U.S. Commodity Futures Trading Commission) and the SEC have a dispute over whether it is a commodity, a security, etc. There’s a kind of turf war going on. I think the facts are pretty clear that Ethereum is a commodity. But that won’t stop people from trying to stir things up.
“The SEC will eventually approve the Ethereum ETF!”
SEC Chairman Gary Gensler did not say whether he believes ETH is a security. However, he suggested that many digital assets other than Bitcoin could be considered securities. Meanwhile, the CFTC stated that ETH is a commodity.
Brian Armstrong says that, as with Bitcoin ETFs, this issue will eventually go to the courts. In August, a court ruled that the SEC acted “arbitrarily and capriciously” in rejecting Grayscale’s application to convert the Grayscale Bitcoin Trust (GBTC) into a spot ETF. Gensler cited this decision as a critical factor in approving spot Bitcoin ETF applications. In this regard, Armstrong shares the following assessment:
If it is unfairly delayed, I think the industry will have to follow a path similar to what happened with Bitcoin. So essentially they’re going to go to the courts, and the courts are going to force the regulators to follow the rules, to follow the law, and to give equal treatment under the law. So it may take more effort, but I think they should really be approved right away.
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