The chief legal officer of Coinbase, a leading cryptocurrency exchange, has stated that Ethereum (ETH) should be classified as a commodity rather than a security. This comes as Consensys, a decentralized finance (DeFi) firm, files a lawsuit against the U.S. Securities and Exchange Commission (SEC). In a recent post, crypto lawyer Paul Grewal supports the notion that Ethereum is a commodity and commends Consensys for challenging the SEC’s “unlawful expansion of authority.” Grewal urges the SEC to acknowledge Ethereum’s status as a commodity, just as other regulatory bodies, such as the Commodities Futures Trading Commission (CFTC), have done. Consensys, in a comprehensive thread on social media, explains that it is taking legal action against the SEC due to its arbitrary expansion of jurisdiction and its impeding effect on Ethereum’s stability and growth by classifying it as a security. The lawsuit aims to safeguard the Ethereum ecosystem and the wider decentralized protocol ecosystem. Meanwhile, the SEC is currently deliberating on whether to approve or reject proposals for Ethereum exchange-traded funds (ETFs), with a decision expected in May. At the time of writing, Ethereum is trading at $3,119, representing a 1.33% decrease over the past 24 hours.