Ethereum has gained fresh regulatory clarity after U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins confirmed that the agency views ETH as a commodity, not a security. Speaking to CNBC, Atkins made it clear that the SEC is treating Ethereum similarly to Bitcoin, offering much-needed reassurance to investors and institutions seeking guidance in the evolving digital asset space.
Although the SEC’s stance remains informal for now, Atkins’ comments mark a significant shift in tone. He stated that “similar to Bitcoin, the SEC has stated informally more than formally that ether is not a security.” This clarification arrives after years of speculation and uncertainty, particularly under former SEC Chair Gary Gensler, who repeatedly avoided definitive statements regarding Ethereum’s legal classification.
Atkins’ remark comes amid increasing pressure from the crypto industry and lawmakers for regulatory clarity. Throughout the year, the SEC’s Crypto Task Force has hosted several roundtable discussions with industry stakeholders to explore which digital assets might fall under securities law. Ethereum’s position in these discussions has always been a gray area, especially as staking and DeFi use cases expand.
While the Commodity Futures Trading Commission (CFTC) has consistently classified both Bitcoin and Ethereum as commodities, the SEC has been slower to make its position clear—especially regarding staking rewards and whether they could be interpreted as interest income or securities offerings. Atkins’ latest statement, even if informal, provides a fresh sense of direction.
This informal recognition is already having real-world market effects. Ethereum’s price surged to $3,639 following the reveal , reflecting over 24% growth in the past week alone. Institutional interest has also grown considerably. Firms such as BTCS, SharpLink Gaming, and GameSquare Holdings have recently added millions of dollars’ worth of ETH to their corporate treasuries, signaling confidence in the asset’s regulatory future.
One notable example is Ether Machine, a blockchain startup that plans to go public with backing of $1.6 billion in Ethereum. This kind of treasury commitment underscores how traditional companies are embracing crypto not just as an investment vehicle, but as part of their core financial strategy.
Meanwhile, Ethereum exchange-traded funds (ETFs) have recorded unprecedented inflows. Data from ETF providers show that investor demand for ETH-linked financial products is surging. The inflows have broken daily records, suggesting that institutional and retail investors alike are gaining confidence in the long-term viability of Ethereum.
Despite this momentum, some key regulatory uncertainties remain. ETF applications for Ethereum staking products, such as BlackRock’s proposal, are still pending approval. The SEC has yet to provide clear guidance on whether staking rewards qualify as securities or taxable income, leaving DeFi participants and staking service providers in limbo.
This regulatory gray zone has been a major hurdle for innovation in Ethereum’s ecosystem. Companies involved in staking services, DeFi protocols, and node operation are unsure how to report income or register activities, creating a chilling effect for some developers and investors.
Still, CFTC Chair Rostin Behnam has reaffirmed his agency’s long-standing stance that Ethereum is a commodity. This adds another layer of support to Atkins’ remarks and may pressure the SEC to finalize a consistent, formal position. If the SEC aligns officially with this view, it could open the door to a new wave of institutional adoption, particularly in staking and DeFi-related services.
In the short term, the price outlook for Ethereum remains optimistic. Traders believe that if the SEC follows through with formal guidance in line with Atkins’ comments, Ethereum could continue its upward trajectory. Analysts are watching closely for regulatory filings, ETF approvals, and tax guidance that could affect staking income reporting.
In conclusion, while the SEC’s declaration remains unofficial, Paul Atkins’ remarks represent a crucial turning point for Ethereum. His statement that Ethereum is “not a security” is being interpreted by the market as a green light for renewed confidence and investment. Institutional buyers are already responding, ETF demand is surging, and Ethereum’s market cap is rising. What comes next will depend on how quickly the SEC can formalize these views and provide comprehensive guidance for Ethereum’s evolving role in finance.
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