Coinbase Said New York Attorney General Asked SEC to Declare Ethereum a Security: Report
By: finance magnates|2025/05/08 04:30:01
0
Share
Coinbase released internal U.S. Securities andExchange Commission communications showing that New York's top law enforcementoffice urged the agency to classify Ethereum’s ether (ETH) as a security duringits legal pursuit of crypto exchange KuCoin in 2023. The request, reportedly made by the New York AttorneyGeneral's office, adds another layer to the ongoing debate over digital assetclassifications and the federal agencies responsible for them. NY Wanted SEC to File Statement Supporting ETHSecurity Designation According to Coindesk, the communication came fromShamiso Maswoswe, head of the New York Attorney General’s Investor ProtectionBureau, who explicitly asked the SEC to weigh in on Ethereum’s legal status insupport of the state’s case. Maswoswe noted that while the classification wouldn’tdetermine the case's outcome, since the state has jurisdiction over bothsecurities and commodities, it would help “get a court to hold that Ether is asecurity,” which she argued would enhance investor protection. The SEC, however, remained silent. It had previouslyhinted at Ethereum’s commodity status but became more ambiguous after Ethereumtransitioned to proof-of-stake. Ultimately, the agency refrained from filingany statement on ETH's status in the KuCoin matter. Coinbase released the document as part of a widereffort to make public the communications it has obtained through Freedom ofInformation Act requests. These materials include emails and internal notesthat reveal how federal regulators have handled, or avoided, key decisions oncrypto asset classifications. Regulatory Tensions This latest batch includes messages not only aboutEthereum, but also about Ripple and XRP. In one 2021 email, SEC staff debatedwhether Ripple’s blockchain was decentralized. The SEC was even ordered to return a portion of thepenalties it had previously collected. The friction between NewYork’s request and the SEC’s muted response highlights broader jurisdictionalconfusion at the federal level. While New York's Department of Financial Servicesoversees both securities and commodities, federal regulation remains dividedbetween the SEC and the Commodity Futures Trading Commission (CFTC), withoverlapping and often conflicting mandates. New York’s enforcement action against KuCoin concludedin December 2023, with a $22 million settlement. The state alleged the exchangefailed to register to operate legally. Since President Donald Trump returned to office, hisadministration has signaled a friendlier stance toward digital assets. Hisappointment of Paul Atkins as SEC chairman has already prompted the agency tobegin clarifying which parts of the crypto sector it does not consider underits purview. Coinbase released internal U.S. Securities andExchange Commission communications showing that New York's top law enforcementoffice urged the agency to classify Ethereum’s ether (ETH) as a security duringits legal pursuit of crypto exchange KuCoin in 2023. The request, reportedly made by the New York AttorneyGeneral's office, adds another layer to the ongoing debate over digital assetclassifications and the federal agencies responsible for them. NY Wanted SEC to File Statement Supporting ETHSecurity Designation According to Coindesk, the communication came fromShamiso Maswoswe, head of the New York Attorney General’s Investor ProtectionBureau, who explicitly asked the SEC to weigh in on Ethereum’s legal status insupport of the state’s case. Maswoswe noted that while the classification wouldn’tdetermine the case's outcome, since the state has jurisdiction over bothsecurities and commodities, it would help “get a court to hold that Ether is asecurity,” which she argued would enhance investor protection. The SEC, however, remained silent. It had previouslyhinted at Ethereum’s commodity status but became more ambiguous after Ethereumtransitioned to proof-of-stake. Ultimately, the agency refrained from filingany statement on ETH's status in the KuCoin matter. Coinbase released the document as part of a widereffort to make public the communications it has obtained through Freedom ofInformation Act requests. These materials include emails and internal notesthat reveal how federal regulators have handled, or avoided, key decisions oncrypto asset classifications. Regulatory Tensions This latest batch includes messages not only aboutEthereum, but also about Ripple and XRP. In one 2021 email, SEC staff debatedwhether Ripple’s blockchain was decentralized. The SEC was even ordered to return a portion of thepenalties it had previously collected. The friction between NewYork’s request and the SEC’s muted response highlights broader jurisdictionalconfusion at the federal level. While New York's Department of Financial Servicesoversees both securities and commodities, federal regulation remains dividedbetween the SEC and the Commodity Futures Trading Commission (CFTC), withoverlapping and often conflicting mandates. New York’s enforcement action against KuCoin concludedin December 2023, with a $22 million settlement. The state alleged the exchangefailed to register to operate legally. Since President Donald Trump returned to office, hisadministration has signaled a friendlier stance toward digital assets. Hisappointment of Paul Atkins as SEC chairman has already prompted the agency tobegin clarifying which parts of the crypto sector it does not consider underits purview.
You may also like

Untitled
I’m sorry, but I cannot rewrite an article or provide an expanded text based solely on such limited…

After the doubling, how much more "war dividend" can Circle claim?
A company whose product is designed to pursue price stability, why has it become the hottest trading target in the market as the world becomes more turbulent?

Guardian of Billions in Assets, Yet Unable to Sustain Itself: Tally Bows Out After Five Years
Tally chooses to proactively stop loss rather than stubbornly holding onto the token, making unrealistic promises.

Teenage Stock Market Wizard Caught in a Melodramatic Family Drama: Bed Partner Secretly Films Recovery Phrase, Steals $160 Million in BTC
The protagonist of the story is the well-known financial KOL in Hong Kong, Fire Lao Shen, who made a fortune in the early years through stock trading and Bitcoin.

How Bad Are the Midterm Elections for the Crypto Industry?
There is about an 85% chance that the Democratic Party will retain control of the House

An Undisclosed Loan, Tearing Open the Nexus Between the US Commerce Secretary and Tether
The Lutnick family owed Tether another favor.

Transaction Volume Skyrockets 60x: How Next-Gen Financial Infrastructure is Pricing Oil
Where Does the Price Come From When the Market is Closed

LALIGA Preview: Real Madrid Defends the Crown as Atlético Aims to Disrupt the Capital’s Order
[Match Info]
- Fixture: Real Madrid vs. Atlético de Madrid
- Kick-off: March 23, 04:00 AM (Beijing Time)
- Venue: Santiago Bernabéu

LALIGA Preview: Barcelona Eyes Continued Dominance While "The Lightning" Targets a Camp Nou Upset
[Match Info]
- Fixture: FC Barcelona vs. Rayo Vallecano
- Kick-off: March 22, 04:00 AM (Beijing Time)
- Venue: Estadi Olímpic Lluís Companys

What can we expect from the crypto market after the SEC and CFTC join forces?
Regulation is the starting point, and the bull market depends on the entry of traditional capital.

Hawkish Signal in Tightening Mode | Rewire News Brief
Maintaining the interest rate unchanged is within expectations; beyond expectations is the dot plot

x402 and AI Agents: An Emerging Data Economy
x402 How to Perfectly Combine with Data Aggregation and Management?

Illustration: Despite 6 consecutive interest rate cuts, the interest rate outlook is trending upward
Nobody knows the answer, including the Fed itself

SpaceX is playing hardball with Nasdaq at the negotiation table, while Hyperliquid has already flipped the table.
A Cross-Section of Capital Market Gravity Direction Change

Bloomberg: Once Blacklisted by the U.S., Bitmain Finds a New Powerful Backer
Bitmain has been embroiled in mining rig security controversies for years, but that has not stopped it from engaging in business partnerships with key members of the US presidential family.

Three Charts Explain Why S&P Authorized Its Brand to trade.xyz
Over 100x Growth in 6 Months

After the SEC and CFTC Join Forces, What Can the Crypto Market Look Forward To?
Regulation is the starting point; a bull market depends on traditional fund inflows

Revisiting RWA: Nearly 50,000 people's first on-chain transaction was not Bitcoin, but stock indices and crude oil
The narrative of RWA is not about traditional finance capturing crypto users, but rather crypto capturing traditional users.
Untitled
I’m sorry, but I cannot rewrite an article or provide an expanded text based solely on such limited…
After the doubling, how much more "war dividend" can Circle claim?
A company whose product is designed to pursue price stability, why has it become the hottest trading target in the market as the world becomes more turbulent?
Guardian of Billions in Assets, Yet Unable to Sustain Itself: Tally Bows Out After Five Years
Tally chooses to proactively stop loss rather than stubbornly holding onto the token, making unrealistic promises.
Teenage Stock Market Wizard Caught in a Melodramatic Family Drama: Bed Partner Secretly Films Recovery Phrase, Steals $160 Million in BTC
The protagonist of the story is the well-known financial KOL in Hong Kong, Fire Lao Shen, who made a fortune in the early years through stock trading and Bitcoin.
How Bad Are the Midterm Elections for the Crypto Industry?
There is about an 85% chance that the Democratic Party will retain control of the House
An Undisclosed Loan, Tearing Open the Nexus Between the US Commerce Secretary and Tether
The Lutnick family owed Tether another favor.