Coinbase Releases Trove of SEC Emails Revealing Debate Over ETH, XRP

Coinbase published more than 10,000 documents obtained through Freedom of Information Act (FOIA) requests, revealing new insights into the U.S. Securities and Exchange Commission’s internal discussions around major cryptocurrencies — particularly Ethereum (ETH) and Ripple’s XRP.

The FOIA disclosures shed light on behind-the-scenes regulatory pressures and inter-agency coordination.

Among the most notable revelations is a June 2023 email from Shamiso Maswoswe, head of the Investor Protection Bureau at the New York Attorney General’s Office (NYAG), asking the SEC to submit an amicus brief supporting the argument that Ether is a security.

“We would like to request that the SEC file an amicus in support of the argument that Ether is a security,” Maswoswe wrote. “I think it would be beneficial to investor protection to get a court to hold that Ether is a security.”

The request stemmed from the NYAG’s lawsuit against KuCoin filed in March 2023, which controversially claimed Ether was an unregistered security, a legal stance that could have broad implications across the digital asset market.

The documents also contain a 2021 internal SEC email reflecting uncertainty about XRP’s classification, in which staff considered the implications if Ripple Labs were to suddenly disappear, asking:

“What risks to the XRP blockchain would or might materialize if Ripple ‘walked away’ or ‘disappeared’?”

This line of questioning reflects how the SEC weighed the dependency of a token’s ecosystem on its issuer, a central theme in its ongoing legal battles with Ripple.

These documents come amid growing pressure on regulators to provide clear rules for digital assets. Under former SEC Chair Gary Gensler, the agency ramped up enforcement while refusing to clarify whether ETH was a security. Gensler often avoided direct answers, even as the agency launched investigations into Ethereum 2.0-related activity.

However, the SEC under new leadership appears to be backing off some of these aggressive moves. It has dropped cases against key industry players, including Coinbase, and faced criticism from both inside and outside government for regulatory overreach and lack of clarity.