Coinbase demanded approval of Grayscale's application to launch an Ethereum ETF

The largest American crypto exchange Coinbase called on the US Securities and Exchange Commission (SEC) to approve Grayscale's application to launch the Grayscale Ethereum Trust exchange-traded fund.

Coinbase General Counsel Paul Grewal said that the exchange's management sent a letter to the regulator in response to a request from the SEC collecting comments on the launch of the Grayscale Ethereum Trust. Coinbase's Main Argument: ETH Share Is Not a Security. Before and after the Ethereum merger, the SEC and the US Commodity Futures Trading Commission (CFTC) viewed ether not as a security but as a commodity, Grewal argues.

Coinbase Praises Ethereum's Transition to Proof-of-Stake (PoS) Consensus Algorithm. This operating model allows you to effectively manage the network and reduce risks, which contributes to the stable operation of the network. Ethereum's secure, decentralized system reduces susceptibility to fraudsters because there is no central entity responsible for managing the blockchain, the exchange believes.

Coinbase's letter says Ether's market depth, tight spreads and price correlations are good signs of a manipulation-resistant market.. ETH's notional dollar trading volume is significantly higher than the vast majority of stocks in the S&P 500 index, including when adjusted for total market value.

“When it comes to meeting the SEC standard for ETP approval, Ether is as stable as Bitcoin. This creates a strong case for approving a spot ETH exchange-traded fund. We remain committed to participating in the creation of a transparent and secure financial ecosystem by maintaining dialogue with regulators,” Grewal wrote.

Recall that in January, a Coinbase lawyer criticized a report by the US Government Accountability Office (GAO), which stated that cryptocurrencies are used to evade sanctions.