Ethereum Gains Clarity as SEC Chair Says ETH Is Not a Security

• SEC Chair Paul Atkins says Ethereum is not a security and should be treated like Bitcoin.

• Corporate entities are buying large amounts of ETH as the price rises by over 24 percent in a week.

• Ethereum ETFs are recording strong inflows despite delays on staking-related approvals.

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has confirmed that the agency does not consider Ethereum a security. In a CNBC interview, Atkins stated that the SEC “informally” views Ethereum in the same category as Bitcoin, effectively treating both assets as commodities.

The clarification comes at a time when institutional interest in ETH is accelerating. Although the Commission has not issued a formal declaration, Atkins emphasized that securities laws will not apply to Ethereum. He also acknowledged Ethereum’s role in supporting a broad ecosystem of layer 2 networks and decentralized applications.

“Similar to Bitcoin, the SEC has stated informally more than formally that ether is not a security,” said Atkins.

The comment marks a significant regulatory shift from the previous administration under Gary Gensler. Gensler had declined to provide a definitive position on Ethereum and launched several investigations into the token’s classification. The SEC’s Crypto Task Force has also held multiple roundtables this year to engage industry stakeholders on crypto regulation.

Institutional Demand Fuels ETH Price Surge

The regulatory update comes amid a surge in Ethereum purchases by corporate treasuries. Firms like BTCS, SharpLink Gaming, and Gamesquare lead the charge, accumulating ETH for long-term holding. Ether Machine, a new public company, is set to launch with $1.6 billion in Ethereum on its balance sheet.

Atkins described the growing corporate adoption as “encouraging” and a signal of continued innovation. He noted that this trend could support long-term development across the blockchain space.

Ethereum’s recent performance reflects this momentum. ETH has rallied to $3,782, gaining over 24% in the past seven days. The token is now erasing losses from earlier in the year, driven by increased institutional activity and renewed retail interest.

Ethereum ETFs Record Strong Inflows

Ethereum ETFs are also posting record-breaking inflows. Following the SEC’s delays on ETF applications involving Ethereum staking, investor focus has shifted toward spot and futures-based products. BlackRock remains among the top issuers seeking regulatory approval for an ETH ETF.

Despite ongoing ambiguity around staking, ETH funds are attracting capital at a pace that rivals Bitcoin ETFs. Analysts view this as a sign of rising market confidence in Ethereum’s regulatory position and future utility.