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Highlights
- Paul Atkins has disclosed that the SEC holds the view that ETH is not a security.
- The SEC Chair notes that the Ethereum blockchain is a key component of the cryptocurrency industry.
- A raft of companies are launching Ethereum treasuries, driving ETH prices toward the $4,000 mark.
Amid a changing regulatory landscape, SEC Chair Paul Atkins has revealed that the Commission does not consider Ethereum to be a security. His comments come amid a buying frenzy for ETH by corporate entities as the asset erases losses from the first half of 2025.
Paul Atkins Says Ethereum Is Not A Security
US SEC Chair Paul Atkins, in a CNBC interview, has disclosed the securities watchdog’s stance toward Ethereum. According to Atkins, the SEC is “informally” classifying Ethereum in the same category as Bitcoin, branding them as commodities.
The SEC Chair noted that securities laws will not apply to Ethereum, clarifying that the Commission is yet to take a formal stance. He added that the Ethereum blockchain is pivotal for other cryptocurrencies in a nod to its thriving layer 2 ecosystem.
“Similar to Bitcoin, the SEC has stated informaly more than formally that ether is not a security,” said Atkins
Since the Trump administration took office, the SEC has sought to provide regulatory clarity regarding the application of federal securities law to cryptocurrencies. Early in the year, the SEC’s Crypto Task Force organized a string of roundtable meetings with several leading industry players in an attempt to classify cryptocurrencies.
Under the Gary Gensler-led SEC, speculation over Ethereum’s status reached a fervent pitch. While Gary Gensler did not give a clear answer on ETH’s status, the agency launched multiple probes to determine its classification as either a security or a commodity.
Meanwhile, the Commodities Futures Trading Commission (CFTC) has continued to view Ethereum and Bitcoin as commodities. However, despite the general view of ETH as a commodity, there is still regulatory ambiguity around ETH staking. The SEC has delayed applications for staking in Ethereum ETFs, with BlackRock also filing its application.
Paul Atkins Acknowledges Skyrocketing Institutional Adoption
The new SEC Chair disclosed in the interview that the trend of corporate entities embracing ETH and other cryptocurrencies is “encouraging.” Paul Atkins added that the soaring institutional interest predicts a “good future” for development and innovation in the sector.
His comments come amid a frenetic push by Ethereum treasury companies to accumulate ETH. BTCS, SharpLink Gaming, and Gamesquare are forming the vanguard of companies adding ETH to their balance sheets. Coingape earlier reported that Ether Machine will launch and go public with $1.6 billion in ETH capital.
On the ETF side of things, Ethereum funds are pulling in remarkable inflows. Fresh off setting a new daily record for inflows, ETH ETFs are keen on reaching new all-time highs to match Bitcoin ETFs. The buzz has sent Ethereum price soaring to $3,782 with the largest altcoin up over 24% in the last seven days.
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