Ramazan Eles 
Coinbase Chief Financial Officer (CFO) Alesia Haas believes Ethereum (ETH) will likely avoid security classification by regulators. This comes amidst ongoing debate and a lack of clear regulatory frameworks for cryptocurrency in the United States.
Haas’ Viewpoint
In a recent interview with Fortune, Haas emphasized that both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have previously indicated ETH is not a security. She attributes the current classification confusion to the absence of comprehensive crypto regulations at the federal level within the US.
Haas stresses the need for a “clear, equitable, applied regulatory framework” for cryptocurrencies. She argues that regulatory clarity would benefit both consumers and Coinbase. For Coinbase, clearer regulations would provide a roadmap for launching compliant crypto products in the US.
SEC Subpoenas and Investigations
A recent Fortune report (March 20) indicated the SEC is investigating the possibility of classifying ETH as a security. The report, based on anonymous sources, claims several US companies have received subpoenas from the SEC identifying ETH as a security due to its switch to a proof-of-stake model. These sources further suggest the SEC may be behind a recent inquiry into the Ethereum Foundation by an unidentified state authority.
Whether ETH is classified as a security or a commodity has significant implications for the cryptocurrency landscape in the US. This classification will determine the types of crypto products offered within the country.
The classification of ETH is expected to influence how spot Ethereum ETFs are treated compared to spot Bitcoin ETFs. Additionally, the Prometheum case has raised concerns among US lawmakers regarding the ability of Special Purpose Broker-Dealers to work with ETH depending on its classification.
Coinbase’s Legal Case
Coinbase is currently facing an ongoing SEC case against several of its products. While the case mentions ETH in various contexts, including staking, it doesn’t explicitly claim ETH is a security.
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