The Coinbase team has recently made a call to the U.S. Securities and Exchange Commission (SEC) to approve Grayscale’s application for a spot Ethereum (ETH) ETF. This move is seen as crucial by Paul Grewal, the company’s chief lawyer, who believes that converting the ETH trust into an instrument is necessary for approval.

“Ether’s Proof of Stake has demonstrably strong governance that exhibits robust characteristics across ownership concentration, consensus, liquidity, and governance, mitigating risks of fraud and manipulation.”

In response to the SEC’s request for comment on Grayscale’s Ether Trust ETP, Coinbase submitted a detailed 27-page document with 96 citations. This document provided legal, technical, and economic rationale for the approval of the ETF.

Coinbase emphasized its commitment to supporting innovation and fostering a transparent, secure, and inclusive financial ecosystem. The company is actively engaged in dialogue and research to explore regulatory solutions within the cryptocurrency space.

The SEC had initially postponed its decision on Grayscale’s Ethereum ETF application until March 10. Commission Chairman Gary Gensler highlighted that the approval of a Bitcoin spot ETF was limited to one cryptocurrency. This delay also impacted BlackRock’s similar bid for a spot crypto ETF.

Grayscale’s head of legal, Craig Salm, is optimistic that the SEC will approve an ETF based on the Ethereum spot price by the summer of 2024.

For more cryptocurrency news and updates, continue exploring Global Crypto News.

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