Jesse Pollak Defends Coinbase's Ethereum (ETH) Holdings at 150,000 ETH

Coinbase's Base network founder Jesse Pollak has pushed back against community criticism over the exchange's recent Ethereum (ETH) sales, insisting that Coinbase ranks among the largest institutional holders of the token. In a social media statement, Pollak said that when dedicated digital-asset treasury companies are excluded, Coinbase stands out as by far one of the biggest corporate ETH holders, with roughly 150,000 ETH accumulated over years through market all-time highs and deep bear-market cycles. He argued that Coinbase has also become one of Ethereum's largest customers through Base, its layer-2 network, which has introduced millions of users to the ecosystem and contributed to numerous improvements on the EVM and the Ethereum roadmap, including EIP-4844 and ERC-4337-based smart wallets. “I cannot understand attacking Coinbase for selling ETH,” Pollak wrote, calling on the community to stop criticizing companies that build on and use the protocol. His remarks followed a post by Ethereum Foundation member chaskin.eth, who argued that much of the backlash is directed at the wrong target, pointing to contributions spanning Base, USDC, cbBTC and the x402 protocol. Pollak warned that a hostile posture toward customers could push major institutional users away from the ecosystem over the long term. He stressed that durable growth depends on welcoming companies that build products on Ethereum and bring users on-chain, rather than treating them as adversaries, and contrasted the current criticism with the collaborative tone of earlier years. While he said he loves Ethereum and remains happy with past collaborations, he described the present dynamic as absurd. As a major custodian and active builder, Coinbase has become a flashpoint in debates over large holders selling ETH, with its treasury choices scrutinized even as the exchange continues to pour capital into Ethereum-aligned infrastructure. Pollak's comments underscore how closely the market watches Coinbase's ETH flows, with the exchange's position viewed as a bellwether for corporate confidence in Ethereum.

Grayscale's research division sees Ethereum, along with Solana and BNB Chain, as likely beneficiaries of a fresh U.S. Securities and Exchange Commission (SEC) proposal designed to ease digital-asset fundraising. The rule, labeled Regulation Crypto Assets and proposed on August 18, would create two tailored exemptions for qualified issuers raising capital through digital assets in the United States. The first path allows issuers to raise up to $5 million over four years; the second permits up to $75 million within 12 months, carrying heavier disclosure requirements, audited financial statements and ongoing reporting duties. A conditional safe harbor is also embedded: when a project meets specified conditions, its digital asset would not be treated as an investment contract and would fall outside related federal securities rules. Grayscale research head Zach Pandl said the new framework could revive blockchain-based fundraising that regulatory uncertainty has long suppressed, arguing that clearer rules would draw more U.S. issuers and investors on-chain. The logic, he explained, is that a rise in new token issuance increases demand for the underlying network's blockspace, which in turn supports the value of its native token. Pandl singled out Ethereum and its fellow altcoins Solana and BNB Chain as potential standouts, noting that all three already host substantial token issuance, stablecoin and decentralized finance activity, where automated-market-maker protocols and lending pools operate at scale. Pandl observed that the two-tier structure deliberately limits securities registration for smaller projects while retaining investor protections on larger raises. Grayscale's conclusion is that if the rule stimulates issuance, much of the resulting value would return to Ethereum, Solana and BNB through increased network usage. The proposal's comment window gives industry participants a chance to shape the final thresholds, which could be adjusted based on feedback. Because the rule is still a proposal, the final text could change during the public comment period and the SEC's subsequent review, leaving the full regulatory impact on Ethereum-based projects unresolved for now.

Taken together, the two developments frame a single theme: Ethereum's institutional standing is being tested on both the treasury and regulatory fronts. Coinbase's defense of its holdings highlights the friction between holding and building, while the SEC's Regulation Crypto Assets proposal, still in draft form, could hand U.S. issuers a clearer path to fundraise on-chain. The official proposal document, released August 18 for public comment, explicitly creates the two-tier exemption structure and the conditional safe harbor described above; as a proposal, it binds no issuer or exchange, and any effective date will follow final rulemaking. If adopted, the framework would touch underwriters, issuers and exchanges relying on crypto fundraising, with Ethereum positioned to capture a meaningful share of new issuance activity.