Coinbase urges SEC to Approve Grayscale's Spot Ethereum ETF

Coinbase has applied to the U.S. Securities and Exchange Commission (SEC) with a request to approve Grayscale's application to launch a spot Ethereum ETF. This was announced by the firm's lawyer, Paul Greval.

He noted that the crypto exchange presented to the regulator "legal, technical and economic arguments" for launching an investment product. According to the statement, Grayscale's application should be approved by converting the trust into a spot Ethereum-ETF.

In his letter, Paul Grewal stressed that Ethereum is classified as a commodity, not a security.

"The transition to the Proof of Stake mechanism has demonstrated sound governance, as evidenced by factors such as ownership allocation, consensus mechanisms, liquidity and management practices that help reduce the risks associated with fraud and market manipulation," the lawyer said in a statement.

Greval added that Coinbase is committed to supporting innovation and creating a transparent and secure financial ecosystem. To this end, the company constantly maintains a dialogue and explores regulatory solutions in the field of cryptocurrencies.

Meanwhile, the potential approval of the Ethereum ETF in the United States could have a significant impact on the operation of the blockchain, according to S&P Global. In a published report, analysts Andrew O'Neill and Alexander Birri warned of a possible increase in the risk of concentration within the network:

"Spot Ethereum ETFs in the United States, which include a staking service, can change the concentration of validators on the network for the better or for the worse. Therefore, it is very important to understand how the choice of ETF issuers affects risks."

Source: https://incrypted.com/coinbase-prizvala-sec-odobrit-spotovyj-ethereum-etf-ot-grayscale/