Coinbase Docs Reveal NY Attorney General Urged SEC to Classify Ethereum as Security, Highlighting Ongoing US Crypto Regulation Uncertainty
Coinbase has released over 10,000 pages of documents through a FOIA request, revealing key insights into U.S. cryptocurrency regulation. The disclosures confirm that in 2023, during New York’s lawsuit against KuCoin, the New York Attorney General’s Office formally asked the SEC to declare Ethereum (ETH) a security, not a commodity, and submit an amicus brief to support their position for investor protection benefits. While the SEC previously hinted at classifying ETH as a commodity, it grew more cautious after Ethereum shifted to Proof-of-Stake, refraining from making a formal declaration. This regulatory ambiguity remains central to market uncertainty for digital assets like ETH. In December 2023, New York and KuCoin reached a $22 million settlement for KuCoin’s unregistered operations in the state. Meanwhile, the regulatory climate has seen some easing, with the appointment of a crypto-friendly SEC chair under President Trump and the Ripple case providing legal precedent following a partial victory and reduced penalties for Ripple. The newly released documents and recent regulatory actions highlight persisting uncertainty over how digital assets such as ETH will be categorized, making regulatory clarity a core concern for crypto traders tracking market sentiment and emerging compliance impacts.
Neutral
The ongoing regulatory ambiguity regarding Ethereum’s classification—as highlighted by the New York Attorney General’s call for SEC clarity and the commission’s continued reluctance to formally declare ETH as a security—sustains uncertainty in the market. While the release of these documents and recent regulatory developments provide transparency, there has been no decisive action that fundamentally alters Ethereum’s legal status short-term. Positive signs include the easing stance from regulatory bodies under new leadership and Ripple’s partial legal win, but these are offset by unresolved categorization issues and recent settlements like KuCoin’s. For traders, the immediate price impact on ETH is likely muted since no definitive regulatory shift occurred. The situation remains fluid; future enforcement or clarification could drive price action, but for now, the market is expected to remain neutral as participants await concrete guidance.