Ethereum, Security? NY AG Wants to Know! 😱

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Oh, the drama! It seems that the New York Attorney General (NYAG) couldn’t just sit around twiddling their thumbs. No, no! They had a bold idea — let’s make Ethereum a “security.” Gasp! And who better to help than the mighty SEC? That’s right, folks, the SEC was strongly urged to consider classifying Ethereum as a security in the infamous KuCoin case. But wait… the SEC just wasn’t having it. 🙄

In fact, according to documents that somehow slipped out into the wild thanks to Coinbase’s Freedom of Information Act request, an email surfaced. This one came from Shamiso Maswoswe, the head of Investor Protection Bureau at the NYAG’s office, who wrote to Gary Gensler’s chief of staff. The message? A polite (but not-so-polite) nudge to get the SEC to file an amicus brief, helping to argue that ETH is, indeed, a security. Fancy, right? 😏

Maswoswe, ever the strategist, admitted that this wouldn’t really mess with New York’s power to chase down crypto cases. Nope, they regulate both securities AND commodities in that fine state. But still, she argued, wouldn’t it be peachy if a court decided ETH was a security? It would make investor protection a whole lot easier. Nice try, Shamiso! 🍑

But what did the SEC do? Well, they just stared blankly at the request and… didn’t file the brief. Because of course. The SEC has been playing it cool and keeping their stance on ETH nice and hazy. They were all set to call it a commodity at one point, but once Ethereum switched to proof-of-stake, things got a little tricky. Now, everyone’s on edge, wondering if it might fall under securities laws. Spoiler alert: The SEC still hasn’t made up their mind. 😂

And Then, the KuCoin Settlement!

Fast forward to December 2023, when the KuCoin case wrapped up. After lots of legal hoopla and crypto hand-wringing, the exchange decided to part ways with New York and fork over a cool $22 million. Attorney General Letitia James couldn’t help but do a little victory dance, claiming this was all part of a big plan to make sure crypto platforms follow the rules. Finally, some accountability! 💃

But wait, there’s more! Coinbase, being the nosy little thing it is, uncovered even more juicy bits about SEC discussions. It turns out, they were also chatting about Ripple’s XRP and where exactly to draw the line between centralized and decentralized blockchain projects. Oh, the regulatory mess! 😅

As if that wasn’t enough, Coinbase continues to feed the public’s hunger for transparency by releasing more documents they obtained through their FOIA request. Who knew crypto could be this entertaining? Stay tuned for the next chapter of this never-ending soap opera. 🍿

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2025-05-07 20:30