As reported by CNBC, SEC Chair Paul Atkins has confirmed that the Commission classifies Ethereum similarly to Bitcoin. He emphasized that securities regulations will not pertain to this digital currency. However, he mentioned that this stance is informal until a formal rule-making process is finalized.
Atkins stated, “Like Bitcoin, the SEC has informally, rather than formally, declared that ether is not considered a security.” This announcement has provided relief to numerous investors and spurred increased purchasing by major corporations.
Paul Atkins: ETH Is Not a Security, Digital Assets Are Being Embraced by the Market
Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (@SECGov), stated that the SEC “informally” considers Ethereum (ETH) not to be a security. He noted that, like Bitcoin,… pic.twitter.com/hhomO7SEFf
— MetaEra (@MetaEraHK) July 21, 2025
Regulatory Bodies Seek Definitive Answers
According to reports, the SEC’s Crypto Task Force has organized several roundtable discussions this year. Industry experts gathered to determine applicable federal regulations for cryptocurrencies.
Under Gary Gensler’s leadership, the agency examined tokens for potential classification as securities but never offered a definitive conclusion on ether. Now, Atkins has stated that Ethereum is regarded as a commodity.
The Commodity Futures Trading Commission has consistently classified Ether and Bitcoin as commodities. However, questions persist regarding whether staking rewards are considered income or tokens.
Growing Institutional Interest in ETH
Leading companies are increasingly investing in Ether for their balance sheets. BTCS, SharpLink Gaming, and Gamesquare are at the forefront. These firms have recently acquired millions of dollars in ETH.
One startup, Ether Machine, is planning a public launch backed by $1.6 billion in Ethereum assets, reflecting the growing confidence of some corporate treasury teams.
ETF Flows Reach New Heights and Prices Respond
Funds focused on ETH have broken their daily inflow records. According to ETF data, new investments in ethereum products have reached an unprecedented level this month.
**Staking Regulations Remain Unclear**
The excitement surrounding these financial instruments has pushed Ether’s price to $3,639, a 24% increase over the past week. Traders anticipate further growth if regulators adhere to Atkins’ comments.
Applications for Ethereum staking ETFs are still pending. BlackRock submitted its proposal months ago, but the SEC has yet to approve it.
Some companies are concerned that staking returns could be classified as securities or taxable income. CFTC Chairman Rostin Behnam continues to support the view of Ether as a commodity, but without definitive SEC guidance, participants in DeFi and staking pools are left with unresolved issues.
Featured image from GBX, chart from TradingView
