New documents released show that the New York Attorney general urged SEC to categorize Ethereum as a financial.
It was clear that the SEC is rushing to 2023 enforcement action against crypto exchange KuCoin. The SEC has not made a public statement about its position.
It is important to note that the word “you” means “you”. documentsThe public is made aware of Coinbase A Freedom of Information Act (FOIA) request included an email that Shamiso Masswoswe sent to Gary Gensler’s chief of Staff, SEC chair, from the Investor Protection Bureau of the NYAG’s office.
Maswoswe demanded that the SEC File an amicus brief in support of the argument that Ethereum is (ETHIt is not a commodity. She acknowledged that New York’s regulation of commodities and securities would not affect its ability to bring the case. However, she argued a ruling that ETH is regulated as a security could help protect investors.
SEC didn’t file the brief and has maintained a largely ambiguous stance towards ETH since.
The SEC has historically indicated that Ether is likely to be a commodity. However, after Ethereum switched from proof-of stake, there was increased speculation about whether Ether could come under securities law. The SEC continues to monitor the cryptocurrency market, but has not officially recognized it as a security. classified ETH can be used as a financial instrument.
KuCoin settlement
KuCoin’s case was settled in December 2023. The exchange agreed to a settlement of $22,000,000 and ceased operations in New York. Letitia Jim, then Attorney General of New York said at the time said This enforcement action formed part of larger efforts to hold platforms that engage in unlicensed crypto activity accountable.
Coinbase’s FOIA has revealed more SEC discussions on digital asset classification. These include internal commentary about Ripple’s XRP as well as the regulatory boundary between centralized blockchain and decentralized projects.
Coinbase, as part its efforts for greater transparency and legal compliance in the crypto regulatory space, has published documents that it obtained under FOIA.
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Source: crypto.news
