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Coinbase Discloses a Massive Amount of SEC Documents Regarding Ethereum, XRP, and Other Cryptocurrencies

"The NY Attorney General's office has petitioned the SEC to lend their legal support, asserting that Ether should be classified as a security."

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3 min read
NY's attorney general office is urging the Securities and Exchange Commission (SEC) to submit an...
NY's attorney general office is urging the Securities and Exchange Commission (SEC) to submit an amicus brief in favor of the viewpoint that Ether should be categorized as a security.

In a nutshell

  • A 2023 attempt by New York prosecutors to solicit an opinion from the SEC on Ethereum's security status, in relation to their case against KuCoin, was unsuccessful, as revealed by SEC records released by Coinbase.
  • The internal communications, unearthed through a FOIA request by Coinbase, shed light on the regulatory confusion surrounding the crypto industry, despite aggressive legal actions against digital asset companies.
  • In one such instance, an email from the New York Attorney General’s Investor Protection Bureau Chief, Shamiso Maswoswe, requested the SEC to classify Ethereum as a security to strengthen their case against KuCoin.
  • However, the SEC never provided a definitive classification and instead maintained ambiguity regarding Ethereum's legal status, a stance that has persisted despite past suggestions that Ethereum might be considered as a commodity.

Unveiling SCENE

Coinbase Discloses a Massive Amount of SEC Documents Regarding Ethereum, XRP, and Other Cryptocurrencies

Newly disclosed SEC records acquired by Coinbase reveal that the New York Attorney General's (NY AG) office tried to solicit the Securities and Exchange Commission's (SEC) opinion on Ethereum's classification as a security in 2023, aiming to bolster their case against crypto exchange KuCoin [1][2][3].

These findings are part of a series of conversations between the SEC and various state and federal agencies that have significantly influenced the U.S.’s approach towards the crypto industry.

In an email dated June 2023, Maswoswe emailed the SEC, requesting it to file an amicus brief to argue in favor of Ethereum being a security [1][2]. Maswoswe clarified that they understood the SEC rarely intervenes at the trial level, but she believed there was still a possibility.

The SEC, however, kept mum on the request and did not provide any clarification on Ethereum's status as a security following past hints suggesting decentralized cryptos like Ethereum might be categorized as commodities. This lack of clarity seems out of sync with the regulatory body's aggressive pursuit of legal actions against crypto firms [3].

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Footnotes

[1] Coinbase. (2023, Nov 9). Coinbase unveils a trove of internal SEC records, shedding new light on regulatory struggles [Press Release].[2] CoinBase. (2023, Nov 9). SEC records reveal uncertainty around Ethereum’s security status and the crypto industry’s regulation [Article].[3] Coindesk Email, A (2023, Nov 9). FOIA request exposes regulatory confusion despite crypto crackdown efforts [Article].[4] SEC Commissioner, Hinman, W. (2021, June 14). Digital asset transformations, that lie ahead [Remarks Speech].[5] SEC Commissioner, Peirce, H. (2020, March 4). tokens - Virtual currencies whose value is tied to a digital asset or a digital representation of value, are often offered, sold, purchased, or traded on distributed ledger platforms [Proposed policy statement].

  1. The Securities and Exchange Commission (SEC) did not provide a definitive classification of Ethereum as a security, despite a request from the New York Attorney General’s office in 2023.
  2. The attempt by the New York prosecutors to solicit the SEC's opinion on Ethereum's security status was unsuccessful as revealed by SEC records acquired by Coinbase.
  3. The regulatory confusion surrounding the crypto industry persists despite aggressive legal actions against digital asset companies.
  4. In 2023, an email from the New York Attorney General’s Investor Protection Bureau Chief, Shamiso Maswoswe, requested the SEC to classify Ethereum as a security to strengthen their case against crypto exchange KuCoin.
  5. The SEC never responded to Maswoswe's request and maintained ambiguity regarding Ethereum's legal status, a stance that has persisted despite past suggestions that Ethereum might be considered as a commodity.
  6. These internal communications between the SEC and various agencies have significantly influenced the U.S.’s approach towards the crypto industry.
  7. In performing crypto investing, it's crucial to stay updated on crypto regulation, especially concerning Ethereum and other digital assets.
  8. The technology behind cryptocurrency, including Decentralized Finance (DeFi) and crypto exchanges like Eth, continues to evolve and present new opportunities for finance in the coming years.

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