New York AG Seeks SEC Declaration of Ether as Security
The New York State Attorney General requested the U.S. Securities and Exchange Commission (SEC) to classify Ethereum's ether (ETH) as a security during its 2023 prosecution of KuCoin, according to documents released by Coinbase.
- Shamiso Maswoswe, head of the Investor Protection Bureau, sought SEC input to bolster the argument that ETH is a security.
- The SEC has not publicly clarified its stance on ETH, oscillating between classifying it as a commodity or security.
- New York's regulatory authority encompasses both securities and commodities, unlike federal oversight split between the SEC and Commodity Futures Trading Commission.
- In December 2023, New York secured a $22 million settlement with KuCoin for failing to register as an exchange.
- Recent SEC communications show ongoing interest in defining crypto assets and addressing regulatory gaps.
New York AG Letitia James emphasized the state's commitment to enforcing regulations to protect investors.