Coinbase CLO Presses SEC Over Withheld ETH2.0 Docs, Demands Transparency on “Ecosystem” Test

Coinbase Ethereum SEC

Journalist

Hassan Shittu

Journalist

Hassan Shittu

About Author

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

Author Profile

Share

Copied

Last updated: 

April 20, 2025

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Coinbase is pushing the U.S. Securities and Exchange Commission (SEC) to release internal documents related to its now-closed investigation into Ethereum (ETH) 2.0.

The exchange is calling for clarity on the agency’s shifting stance toward the second-largest cryptocurrency by market cap.

Coinbase Seeks Answers on SEC’s Changing Ethereum Stance in FOIA Lawsuit

Paul Grewal, Chief Legal Officer at Coinbase, disclosed on X that the company has obtained a list of withheld materials from the SEC in its ongoing Freedom of Information Act (FOIA) lawsuit.

The documents, listed in a “Vaughn index” provided by the SEC, offer a glimpse into the agency’s internal deliberations over whether ETH should be classified as a security.

Among the documents are a May 2022 staff analysis titled “Analysis of Ethereum 2.0 under Howey,” a February 2023 email labeled “RE Is Ethereum a security,” and an April 2023 memo potentially provided to SEC Commissioners ahead of a vote to investigate Ethereum 2.0.

The list also includes various internal communications from 2023 and 2024 discussing ETH’s legal status, culminating in what appears to be a “Case Closing Narrative” for the investigation.

Grewal said these materials are critical to understanding how and why the SEC changed its position on ETH.

“Why did this asset pass muster under the made-up ‘ecosystem’ test but not others?” he wrote. “We need a full airing of past mistakes to avoid repeating them in the future.”

The SEC had previously stated in 2018 that ETH was not a security. However, in 2023, under Chair Gary Gensler, the agency quietly initiated a probe into Ethereum 2.0, asserting jurisdiction over the asset as a security.

That move drew widespread criticism and culminated in a lawsuit filed by Ethereum developer Consensys on April 25, seeking to stop what it called an “invalid” investigation.

Following growing political and public scrutiny, and a June 7 letter from Consensys urging the SEC to confirm whether May’s spot ETH ETF approvals signaled ETH’s commodity status, the agency notified the firm that it had closed the investigation.

In a June 19 post, Consensys said, “The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.”

The firm said the decision confirms that the SEC will not bring charges related to ETH sales, calling it “a major win for Ethereum developers, technology providers, and industry participants.”

State-Level Crackdown Continues as Oregon AG Targets Coinbase Despite Federal Retreat

The regulatory tide may be turning at the federal level, but state officials aren’t backing down.

Just months after the SEC dropped its landmark case against Coinbase, Oregon Attorney General Dan Rayfield is preparing a new lawsuit accusing the exchange of selling unregistered securities in the state.

Coinbase’s Chief Legal Officer, Paul Grewal, dismissed the move as a “copycat case,” directly echoing the SEC’s now-withdrawn 2023 complaint.

“The attorney general’s office made it clear they are literally picking up where the Gary Gensler SEC left off,” Grewal stated.

The case is part of the growing concerns around a fragmented U.S. regulatory environment, where state-led actions could undermine recent federal clarity.

Although the SEC under Acting Chair Mark Uyeda has taken a less combative stance, some state authorities appear ready to continue enforcement efforts independently, keeping the pressure on major players like Coinbase even as federal momentum fades.