Coinbase Reveals NY AG’s Push for SEC to Classify Ethereum as a Security

Internal communications disclosed by Coinbase reveal that the New York Attorney General’s office urged the U.S. Securities and Exchange Commission (SEC) to classify Ethereum’s ether (ETH) as a security during its 2023 case against crypto exchange KuCoin. The request, led by Shamiso Maswoswe of the state’s Investor Protection Bureau, highlights the increasing regulatory scrutiny over digital asset classifications. This development underscores the ongoing tension between crypto industry participants and regulators, as the classification of ETH as a security could have significant implications for the broader cryptocurrency market. The disclosure by Coinbase provides insight into the behind-the-scenes efforts by state regulators to influence federal oversight of digital assets.

New York Attorney General Urged SEC to Classify Ethereum as a Security: Coinbase Report

Coinbase has disclosed internal communications revealing that the New York Attorney General’s office pressed the U.S. Securities and Exchange Commission to declare Ethereum’s ether (ETH) a security during its 2023 case against crypto exchange KuCoin. The request, spearheaded by Shamiso Maswoswe of the state’s Investor Protection Bureau, underscores the escalating regulatory scrutiny over digital asset classifications.

The move highlights the tension between state and federal agencies in determining the legal framework for cryptocurrencies. Ethereum, the second-largest blockchain by market value, now faces renewed uncertainty as regulators grapple with its jurisdictional status.

Coinbase Revives HTTP 402 with x402 Protocol to Simplify Crypto Payments on the Web

Coinbase’s Developer Platform has resurrected the long-dormant HTTP 402 status code through x402, an open-source protocol designed to embed native cryptocurrency payments into web infrastructure. The solution eliminates registration requirements, email dependencies, and complex signatures—reducing transactions to a single line of code.

The protocol’s frictionless design specifically targets AI agents, which have historically struggled with traditional payment gateways. This innovation could accelerate crypto’s adoption as a default payment method across decentralized applications and e-commerce platforms.

Originally conceived in the early internet era, the HTTP 402 code had remained unimplemented for three decades until Coinbase’s intervention. The x402 framework now positions cryptocurrencies as the missing layer to fulfill the web’s original vision of seamless value transfer.