Newly released documents have revealed internal debates within the U.S. Securities and Exchange Commission (SEC) regarding whether XRP and Ethereum (ETH) should be considered securities. These documents were made public by Coinbase through a Freedom of Information Act (FOIA) request. The New York Attorney General’s Request Revealed In June 2023, Shamiso Maswoswe, a New York State Attorney General’s chief official, emailed the SEC requesting the agency to assist in a legal matter involving Ethereum. The legal case was part of a lawsuit against crypto exchange KuCoin . The case claimed Ethereum was being sold as an unregistered security. However, the case outcome would not depend on the SEC’s opinion. The New York Attorney General’s office had jurisdiction over securities and commodities. However, Maswoswe believed the SEC’s support would help protect investors and shape future legal decisions about cryptocurrencies. Whether a cryptocurrency is seen as a security is very important. A security classification would place a cryptocurrency under the SEC’s jurisdiction. That means stricter rules and more government oversight. Meanwhile, the debate over whether Ethereum is a security has been ongoing for years and significantly affects how it is regulated. Gary Gensler’s Views on Ethereum The debate about whether Ethereum is a security started when Gary Gensler was the SEC chair. Gensler was known for his cautious approach toward cryptocurrencies. Although he did not make a clear statement on whether Ethereum should be considered a security , he claimed that many digital assets should fall under the SEC’s jurisdiction. Under Gensler’s leadership, the SEC investigated Ethereum 2.0, a major update for the Ethereum blockchain, which raised concerns within the crypto community. Gensler’s tenure was considered too tough on the crypto industry and stifled innovation and growth. In addition to Ethereum, the documents also show that the SEC discussed whether XRP should be considered a security. An email from 2021 asked if the risks to XRP’s blockchain would increase if Ripple, the company behind XRP, “disappeared.” This shows the SEC’s concern about the future of XRP and the ongoing legal fight with Ripple. SEC Takes New Approach to Crypto Regulation Since these documents were public, the SEC has changed its approach toward crypto regulation. Under new leadership, the agency has dropped charges against major players in the crypto industry, including Coinbase. While the SEC still wants to regulate the crypto industry, it now seems more willing to listen and talk with crypto companies. The post SEC Docs Reveal Internal Talks on XRP and Ethereum’s Security Status appeared first on TheCoinrise.com .
