TLDR
- SEC Chair Paul Atkins confirms Ethereum is informally classified as a commodity, not a security.
- ETH price nears $4,000 as firms like BTCS and Gamesquare add Ethereum to their balance sheets.
- SEC delays ETF staking approvals, but Ethereum ETFs see record daily inflows in 2025.
- GENIUS and CLARITY Acts create the first federal frameworks for stablecoins and digital assets.
Ethereum has been classified informally as a commodity, not a security, by U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins. His statement comes as companies increase their Ethereum holdings and ETH gains in price. This regulatory position follows months of debate on whether Ethereum should be governed by securities law. Atkins made the disclosure during a recent interview, offering more clarity for institutions and investors.
SEC Chair Clarifies Ethereum’s Regulatory Status
SEC Chair Paul Atkins stated during an interview that the agency does not view Ethereum as a security under current guidelines. He explained that Ethereum is being treated similarly to Bitcoin and is instead considered a commodity.
Atkins said, “Similar to Bitcoin, the SEC has stated informally more than formally that ether is not a security.” His remarks address a long-standing uncertainty around Ethereum’s legal classification, especially as corporate interest in ETH continues to rise.
While not yet a formal declaration, this view from the SEC’s leadership provides direction for firms operating in the cryptocurrency sector. Atkins also acknowledged Ethereum’s importance within the digital asset ecosystem due to its role in decentralized applications and other blockchain projects.
💥BREAKING:
SEC Chair Paul Atkins says $ETH "is not a security." pic.twitter.com/nZoVLz342i
— Crypto Rover (@rovercrc) July 21, 2025
The SEC has previously conducted investigations into Ethereum’s structure and staking features. These reviews contributed to a broader understanding of how decentralized networks differ from centralized securities offerings. However, Atkins emphasized that current Ethereum operations do not meet the criteria for a security classification.
Institutional Interest in Ethereum Grows
Corporate entities have increased their Ethereum holdings in 2025, especially following market corrections earlier in the year. Publicly traded companies such as BTCS, Gamesquare, and SharpLink Gaming have begun adding ETH to their treasuries.
This shift in institutional strategy coincides with Atkins’ announcement, with companies citing regulatory clarity as one reason for their increased exposure to Ethereum. Ethereum exchange-traded funds (ETFs) have also seen higher demand, with daily inflows reaching new records.
Several firms have filed applications for Ethereum-based ETF products, including BlackRock. However, staking features within these ETF proposals remain under SEC review. This area continues to draw attention from both regulators and asset managers as they look for guidelines that allow staking within fund structures.
Atkins referred to this rising adoption as “encouraging” and said it shows the U.S. crypto sector is moving toward greater integration with traditional finance. ETF decisions are expected between August and October, and the SEC is currently reviewing multiple proposals related to Ethereum and similar networks.
U.S. Regulation Shifts Toward Crypto Integration
Atkins’ remarks follow the launch of legislative frameworks such as the GENIUS Act and the CLARITY Act. These laws are designed to create clear categories for digital assets, separating securities from commodities.
The GENIUS Act classifies stablecoins as digital cash backed by traditional assets like U.S. dollars or Treasuries. It also sets reporting and audit standards for stablecoin issuers to ensure transparency and security.
The CLARITY Act, passed by the House, outlines how federal agencies should determine whether a crypto asset is a security or a commodity. It supports the development of compliant crypto products and seeks to align regulatory bodies under a unified framework.
During a recent roundtable, the SEC’s Crypto Task Force met with blockchain developers and Ethereum-related organizations. Participants discussed the ERC-3643 standard, which supports regulated token issuance on Ethereum. Chainlink’s Automated Compliance Engine was also presented as a tool for meeting compliance requirements using smart contracts.
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