Coinbase Submits Comment Letter to US SEC..."ETH is not a security"

Paul Grewal, Coinbase's Chief Legal Officer (CLO), announced via X that the company has submitted a 27-page comment letter to the U.S. Securities and Exchange Commission (SEC) regarding its review of the grayscale ETH Spot ETF. "In the comment letter, we conveyed our view that ETH is not a security; that ETH's proof-of-stake has strong governance features and a very low risk of fraud and manipulation due to its consensus algorithm, liquidity, and governance; and that economically, ETH meets the SEC's criteria for non-security status as well as BTC. Coinbase is committed to helping the SEC make informed decisions and supporting innovation in the rapidly evolving cryptocurrency landscape.

Meanwhile, Ethereum creator Vitalik Buterin told X: "At Layer 1, when network consensus fails, things are fixed at a level that keeps core developers busy all day. But a bug at Layer 2 can cause a lot of people to lose money," Vitalik Buterin told X in an interview. "We think it's better to take the approach of adding features at layer 1 to reduce the code burden at layer 2 and create simple, yet sophisticated code compositions."