Coinbase’s Chief Financial Officer, Alesia Haas, has expressed her belief that Ethereum (ETH) is unlikely to be classified as a security. Haas made these comments during an interview with Fortune, highlighting that both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have previously stated the same.
Haas attributed the classification issue to the lack of regulatory clarity surrounding cryptocurrencies in the United States. She emphasized the need for a comprehensive crypto regulation at the federal level, advocating for a clear and equitable regulatory framework. Haas emphasized that regulatory clarity would not only protect consumers but also enable Coinbase to introduce compliant products in the US.
There have been reports that the SEC is attempting to define ETH as a security, with some companies allegedly receiving subpoenas in which the SEC identifies ETH as a security due to its transition to proof-of-stake. Nevertheless, neither the companies nor the regulator have confirmed the existence of such subpoenas or the probe.
The classification of Ethereum as a security or commodity holds significant implications as it could impact the offering of products in the US, including the treatment of spot Ethereum exchange-traded funds (ETFs) and the ability of Special Purpose Broker-Dealers to work with ETH. It should be noted that Coinbase is currently facing an SEC case regarding some of its products, which touches upon ETH in certain areas but does not explicitly allege that ETH is a security.