ConsenSys proposed four reasons why Ethereum should not be considered a security:

1. The SEC's historical position on Ethereum: William Hinman, former head of the SEC's Division of Corporate Finance, said in 2018 that Ethereum was not a security. The SEC has not yet officially retracted this position

2. CFTC classifies Ethereum as a commodity: The U.S. Commodity Futures Trading Commission (CFTC) has long considered Ethereum a commodity. In a recent civil enforcement action involving the cryptocurrency exchange KuCoin, the CFTC explicitly classified Ethereum as a commodity.

3. Decentralization and open protocols: The essence of Ethereum's architecture is decentralization. Unlike securities, Ethereum runs on a platform where all information is publicly accessible.

4. The irrelevance of the consensus mechanism transition: Ethereum's recent transition from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism was cited by the SEC as a potential reason for the reclassification. However, this transition does not affect the core essence of Ethereum or its non-security classification.