SEC’s Internal Documents Shed Light on Ethereum 2.0 Regulation

New SEC documents reveal internal debates regarding Ethereum 2.0’s regulatory standing, shedding light on the uncertainty surrounding its classification. Coinbase’s Paul Grewal has accessed these documents under the Freedom of Information Act and shared insights into the SEC’s evaluation process for this significant cryptocurrency. 2022 discussions focused on how ETH 2.0 fits within existing regulatory frameworks, highlighting concerns about compliance with new consensus mechanisms and regulatory standards. This exploration of potential regulatory steps led to questions about Ethereum’s classification as a security in February 2023.