The controversy over the security status of Ethereum has reignited over the approval of ETH spot ETFs

Cryptocurrency specialist media The Block reported that the U.S. Securities and Exchange Commission (SEC) has approved the 19b-4 filings of eight companies applying for ETH spot ETFs, sparking renewed debate over whether Ethereum is recognized as a security. Regarding this, Coinbase Chief Legal Officer (CLO) Paul Grewal said, "This approval was a watershed moment in concluding the security status of Ethereum. The SEC has long refrained from clarifying whether Ethereum is a security, a non-security, a commodity, or something else. However, the SEC's use of the S-1 registration form indicates that more than 40% of the ETF's portfolio is not securities."

Coy Garrison, a former advisor to SEC Commissioner Hester Peirce, stated, "The SEC's decision essentially confirms that Ethereum is a commodity. The SEC specified in the 19b-4 approval documents that the ETF funds are 'commodity-based trust shares.' If Ethereum were a security, the ETH spot ETF would not have been approved under current regulations. However, the SEC might argue that Ethereum could be considered a security depending on specific trading conditions and other detailed circumstances."

Ashley Ebersole, legal advisor to DEX infrastructure provider 0x Labs (ZRX), explained, "The SEC's approval of the 19b-4 filings cannot be interpreted as a definitive stance on Ethereum. I believe the SEC will later claim that the approval of the ETH spot ETF has no bearing on the recognition of Ethereum's security status."