Coinbase CEO Advocates for Ethereum Classification as Commodity

Brian Armstrong, the founder and CEO of Coinbase, has stated that he considers Ethereum (ETH) to be akin to Bitcoin (BTC) in terms of its classification as a commodity under US federal law.

This distinction holds significance as the US Securities and Exchange Commission (SEC) evaluates various applications for Ethereum exchange-traded funds (ETFs), having already greenlighted Bitcoin ETFs earlier this year.

Armstrong highlighted in an interview with Bloomberg that, given the SEC’s approval of Bitcoin ETFs, there should be a prompt approval process for Ethereum ETFs. However, he noted potential complications due to differing views among federal agencies regarding Ethereum’s classification, whether as a commodity or a security.

Armstrong expressed the view that Ethereum ETFs should be approved promptly, emphasizing the importance of equal treatment under the law. He pointed out the politicization of cryptocurrency matters within federal agencies, citing a perceived turf war between the U.S. Commodity Futures Trading Commission (CFTC) and the SEC over Ethereum’s classification.

While SEC Chair Gary Gensler hasn’t explicitly labeled Ethereum as a security, he has suggested that many digital assets, apart from Bitcoin, could potentially be considered securities. On the other hand, the CFTC has indicated Ethereum’s classification as a commodity.

Armstrong hinted at the possibility of resolving the issue through legal channels, similar to the process for Bitcoin ETFs. He referenced a previous court ruling in August, which found the SEC’s rejection of Grayscale’s Bitcoin Trust conversion into a spot ETF to be arbitrary and capricious, influencing subsequent spot Bitcoin ETF approvals.

The industry may pursue a similar path through the courts if Ethereum ETF approvals face unfair delays. Armstrong suggested that such legal action could compel regulators to adhere to rules and laws, ensuring equal treatment under the law.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.