TLDR
SEC approved Ethereum ETFs while still probing its security status, fueling regulatory confusion.
FOIA docs reveal SEC’s last-minute meeting on Ethereum ETPs before ETF approval.
Coinbase’s Paul Grewal questions SEC’s contradictory approach to Ethereum’s legal classification.
Lack of clear guidelines on Ethereum’s status sparks growing calls for regulatory clarity.
Coinbase’s Chief Legal Officer, Paul Grewal, has raised concerns over the SEC’s actions regarding Ethereum, especially surrounding the approval of Ethereum Exchange-Traded Funds (ETFs).
A recently released email trail, uncovered through the Freedom of Information Act (FOIA), shows that SEC Chair Gary Gensler called an “impromptu” meeting just weeks before the approval of Ethereum ETFs.
This new information is stirring questions about the regulatory clarity surrounding Ethereum’s legal status.
Gary Gensler’s “Impromptu” Meeting
According to the documents obtained from the SEC’s FOIA Reading Room, an email from April 2024 reveals that Gary Gensler organized a meeting about Ethereum Exchange-Traded Products (ETPs).
The timing of this meeting—just weeks before the official approval of ETH ETFs in May 2024—has raised eyebrows.
Jorge Tenreiro, an SEC staffer, informed Gregory Smolar of the meeting, which was then forwarded to Gurbir Grewal, the SEC’s Director of Enforcement.
There are new docs from @SECgov now live in our FOIA Reading Room 📷 We now know Gensler had an "impromptu" mtg about ETH ETPs mere weeks before they were approved. But what was said, and why did the SEC continue to investigate ETH as a security even after approving ETH ETFs? 1/2 pic.twitter.com/FUJS1fm0kC
— paulgrewal.eth (@iampaulgrewal) June 9, 2025
The urgency of the meeting, as indicated by the email trail, suggests that there were ongoing concerns about ETH regulatory classification. Smolar mentioned that Gensler had called the meeting to discuss Ethereum ETPs, and revisions to the talking points were underway.
This suggests that the US SEC was actively engaging with the issue in the final weeks leading up to the approval of the ETH ETFs.
US SEC Ongoing Ethereum Security Probe
Despite the approval of ETH ETFs in May 2024, the SEC continued to probe Ethereum’s status as a security. The FOIA documents show that the agency had not yet clarified whether Ethereum should be classified as a commodity or a security.
Paul Grewal, Coinbase’s CLO, has expressed concern that the US SEC’s actions, which include both approving ETH ETFs and continuing to investigate Ethereum’s legal status, create uncertainty for the crypto industry.
Grewal’s public statements reflect a growing sense of frustration within the crypto community. Many believe that the SEC’s approach to Ethereum is inconsistent especially. The fact that the agency approved Ethereum ETFs while still scrutinizing Ethereum as a security raises questions about the stability and transparency of the regulatory framework for digital assets.
Regulatory Confusion and Calls for Transparency
The contradictory nature of the US SEC’s actions has led to a growing call for greater regulatory clarity. The crypto industry has long faced a lack of clear guidelines, and the recent emails have intensified calls for more transparency in the SEC’s decision-making process.
Users have expressed concerns that without clear rules, the regulatory environment will remain unpredictable and hinder the growth of digital assets like Ethereum ahead of the Ethereum ETF staking approval decision.
Several observers have called for clearer jurisdictional lines between the SEC and the Commodity Futures Trading Commission (CFTC). They argue that establishing a clear definition of digital commodities would help alleviate the regulatory uncertainty that currently surrounds cryptocurrencies like Ethereum. Without these definitions, the ongoing ambiguity surrounding Ethereum’s status will likely persist.
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