Paul Grewal, chief legal officer at Coinbase, has taken to X (formerly Twitter) to debunk some misinformation surrounding Ethereum (ETH).

Grewal, who has served as the exchange’s CLO since August 2020, has noted that millions of Americans own the largest altcoin. Furthermore, he has stressed the cryptocurrency’s significance for the broader cryptocurrency ecosystem. 

Conflicting views 

According to Fortune, the U.S. Securities and Exchange Commission is attempting to classify Ethereum as a security. As part of its aggressive campaign, it has slapped multiple companies with subpoenas. 

Prior to that, Coindesk revealed that the Ethereum Foundation was under investigation by a state authority.      

However, as Grewal has pointed out, Gensler himself had previously stated that Ethereum was not a security. 

Bill Hinman, the former director of the SEC’s corporation finance division, has famously recognized Ethereum as a non-security (but not without controversy). Moreover, the SEC’s own lawyers have compared the second-largest cryptocurrency to Bitcoin (which has been repeatedly recognized as a commodity by the SEC). 

Backlash in Congress

Congressman Patrick McHenry (NC-10) has also taken aim at Gensler following the recent reports about the SEC’s attempts to unilaterally classify Ethereum as a security. 

According to McHenry, this contradicts the Commodity Futures Trading Commission’s stance on this matter. “Congress decides the SEC’s jurisdiction and budget, Chair Gensler doesn’t get to make it up as he goes along,” he said. 

During a 2023 congressional hearing, McHenry slammed Gensler over the supposed lack of clarity in the marketplace. However, Gensler has repeatedly refused to share his views on the second-biggest cryptocurrency by market cap.