SEC Filing Reveals New York Attorney General Once Sought to Classify ETH as Security

BlockBeats News, May 7th, according to CoinDesk report, based on the latest SEC internal files disclosed by Coinbase, during the 2023 lawsuit against the cryptocurrency exchange KuCoin by the New York Attorney General's Office, it was revealed that the office had formally requested the U.S. Securities and Exchange Commission (SEC) to recognize Ethereum as a security.

New York Investor Protection Bureau Director Shamiso Maswoswe explicitly requested in an email that the SEC submit an amicus brief supporting this position, stating "While this is not a determinative factor in the case judgment, a court ruling that ETH is a security would be more beneficial for investor protection."

The SEC ultimately did not respond to the New York prosecutors' request, maintaining a vague stance on ETH's status. The files show that the SEC initially leaned towards classifying ETH as a commodity, but their position wavered after Ethereum shifted to a PoS mechanism. It is reported that New York's financial regulatory system is unique, with its Department of Financial Services overseeing both securities and commodities trading. With the appointment of cryptocurrency-friendly figure Paul Atkins to head the SEC under the Trump administration, the tense situation of U.S. crypto regulation has eased somewhat. The SEC has recently issued statements clarifying that some digital assets do not fall into the category of securities. However, this exposed document once again highlights the fundamental disagreement between U.S. federal and state-level regulatory agencies on the issue of cryptocurrency classification.