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

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. We squeezed more details from @SECGov in our FOIA suit about the Gensler-era investigation of ETH2.0. They've identified the following documents in their "Vaugh index" of withheld materials that we intend to pursue. 1/9 — paulgrewal.eth (@iampaulgrewal) April 21, 2025 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.” ETHEREUM SURVIVES THE SEC. Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0. This means that the SEC… — Consensys.eth (@Consensys) June 19, 2024 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. Today the Oregon Attorney General is resurrecting the dead by bringing a copycat case of @SECGov 's enforcement action against Coinbase. As a reminder, the SEC dismissed that case with prejudice. This type of political jockeying is an embarrassing waste of Oregon taxpayer… — paulgrewal.eth (@iampaulgrewal) April 18, 2025 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. The post Coinbase CLO Presses SEC Over Withheld ETH2.0 Docs, Demands Transparency on “Ecosystem” Test appeared first on Cryptonews .