The reviews about the SEC's choice to label Ethereum as a safety have sparked robust backlash
Paul Grewal, chief criminal officer at Coinbase, has taken to X (formerly Twitter) to debunk some misinformation surrounding Ethereum (ETH). Grewal, who has served as the exchange's CLO in view that August 2020, has cited that tens of millions of Americans very own the greatest altcoin. Furthermore, he has burdened the cryptocurrency's magnitude for the broader cryptocurrency ecosystem.
Conflicting views
According to Fortune, the U.S. Securities and Exchange Commission is trying to classify Ethereum as a security. As section of its aggressive campaign, it has slapped more than one agencies with subpoenas. Prior to that, Coindesk published that the Ethereum Foundation used to be beneath investigation through a nation authority.
However, as Grewal has pointed out, Gensler himself had before noted that Ethereum used to be now not a security. Bill Hinman, the former director of the SEC's agency finance division, has famously diagnosed Ethereum as a non-security (but no longer except controversy). Moreover, the SEC's personal legal professionals have in contrast the second-largest cryptocurrency to Bitcoin (which has been over and over identified as a commodity by means of the SEC).
Backlash in Congress
Congressman Patrick McHenry (NC-10) has additionally taken intention at Gensler following the latest reviews about the SEC's tries to unilaterally classify Ethereum as a security. According to McHenry, this contradicts the Commodity Futures Trading Commission's stance on this matter. "Congress decides the SEC's jurisdiction and budget, Chair Gensler does not get to make it up as he goes along," he said. During a 2023 congressional hearing, McHenry slammed Gensler over the supposed lack of readability in the marketplace. However, Gensler has again and again refused to share his views on the second-biggest cryptocurrency through market cap.
