Illegal influence on sec? In addition to XRP, Ethereum should also be classified as securities
- Coinbase reveals internal discussions of the SEC about the security status of XRP and New York’s advance for ETH classification.
- The developing attitude of the SEC for crypto regulation in the middle of the XRP and ETH debates generate uncertainty.
Coinbase has published more than 10,000 documents that disclose the internal communication of the US Securities and Exchange Commission (SEC) with regard to the regulatory status of XRP and Ethereum (ETH). These documents received by inquiries about the Freedom of Information Act (FOIA) show the ongoing discussions about whether XRP should be classified as securities.
They also revealed the pressure from the New York general prosecutor’s office to classify ETH as security. The disclosure throws a light on regulatory uncertainty in connection with digital assets in the United States.
Internal SEC debate about the status of XRP
One of the most important findings from the publication The Coinbase document is an internal SEC discussion about whether XRP can be classified as security. In 2021, the SEC officials examined whether XRP has the characteristics of a securities. An e-mail revealed an inquiry about possible risks for the XRP blockchain if Ripple, the company behind XRP, “went away or disappear.”
This question arose as part of the ongoing legal dispute of the SEC with Ripple, which began in December 2020 when the SEC Ripple accused a non -registered securities offer.
The documents show that the SEC has weighed the classification of XRP for years. The ongoing legal case that has attracted great attention in the crypto industry. These internal emails throw a light on the uncertainties with which the regulatory authorities are faced with the determination of the legal status of certain cryptocurrencies.
New York Attorney General is committed to the classification of ETH as security
The New York general prosecutor’s office has put pressure on the Sec as securities classifying ETH. This print came to light in a recently published document of Coinbase. In June 2023 demanded Shamiso maswawn, derHead of the investor Protection Bureau in the office of the New York General Prosecutor’s Attorney, the SEC to submit an Amicus letter in which he argues that ether is a securities. This application was part of the state’s procedure against Kucoin, which was accused of violating state securities and goods laws.
Maswoswe said that the participation of the SEC in the case would have no direct influence on the result, but that a court ruling that ETH classifies as security would be a big cause for the efforts to protect investors. She wants this clarity.
The SEC has not yet taken a fixed point of view on this matter. First of all, the authority indicated that ETH was probably a goods. Since then, however, she has not made any final statements.
Further effects of the SEC approach for crypto regulation
The authority has been trying to classify certain digital assets as securities for some time. But the crypto industry has opposed it and claims that these classifications are unclear and inconsistent. This has led to increased uncertainty in crypto regulation in the United States.
As shown in our latest reporting, Gary Gensler pursued a more aggressive approach to crypto regulation during his term as a SEC chairman. However, the latest developments indicate a shift towards a more moderate and more flexible approach.
This change is shown in the recent round table discussion of the SEC entitled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading”, which took place in April 2025.
In the meantime, the SEC recently dropped charges against large crypto companies such as Coinbase. This is followed by Ripple’s legal victory, which forced the Sec to rethink its unclear and inconsistent approach to crypto regulation.
The Chief Legal Officer of Ripple, Stuart Alderoty, said that the SEC’s decision to drop the XRP case shows that the authority recognizes its failure to determine clear regulations. He believes that it is time for the SEC to go beyond the courtroom and work with the congress in order to create effective, permanent regulations.
Ripple is progressing. The Hidden Roads takeover worth $ 1.25 billion has been completed and now focuses on the growth of the company and the cooperation with the regulatory authorities in order to create a clear regulatory framework for the industry.
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