Recent statements from SEC Chair Paul Atkins have clarified the regulatory stance towards Ethereum. In a conversation with media, he emphasized that Ethereum, much like Bitcoin, will not be classified under securities laws. However, this viewpoint remains provisional until formal rule-making processes are finalized.

Atkins remarked, “Similar to Bitcoin, the SEC has stated informally more than formally that ether is not a security.” This declaration has significantly reassured investors, invigorating substantial investments from major firms.

SEC Chairman Paul Atkins Declares: ETH is Not Considered a Security, Digital Asset Market Growing Stronger

According to Paul Atkins at the SEC, Ethereum (ETH) is “informally” perceived as not a security, highlighting the growing acceptance of digital assets… pic.twitter.com/hhomO7SEFf

— MetaEra (@MetaEraHK) July 21, 2025

Need for Clarity in Regulation

As evidenced by multiple reports, the SEC’s Crypto Task Force has been engaging industry leaders through various discussions this year to clarify which federal regulations apply to cryptocurrencies.

While under Gary Gensler, the SEC scrutinized numerous tokens for potential securities classification, there remained ambiguity surrounding Ethereum. Now, with Atkins at the helm, Ethereum is positioned as a commodity.

The Commodity Futures Trading Commission has consistently labeled both Ether and Bitcoin as commodities. Nonetheless, questions persist regarding the classification of staking rewards, whether they are considered income or additional tokens.

Rising Institutional Interest in Ethereum

Numerous major companies are accumulating Ethereum as a strategic asset on their balance sheets. Organizations like BTCS, SharpLink Gaming, and Gamesquare are leading the charge, having collectively invested millions in recent weeks.

A noteworthy startup, Ether Machine, is planning to go public with an impressive backing of $1.6 billion in Ethereum. This reflects growing confidence among corporate treasuries.

ETF Inflows Soar, Prices Follow Suit

Funds focused on ETH have recently broken their previous daily inflow records, with fresh capital entering Ethereum products reaching an unprecedented peak this month.

Uncertainty Surrounding Staking Regulations

The recent excitement around Ethereum investment vehicles has propelled Ether’s price to $3,639, reflecting an increase of over 24% in just a week. Traders anticipate further price appreciation, contingent on regulatory clarity in light of Atkins’ statements.

However, applications for Ethereum staking ETFs remain in a state of limbo. BlackRock’s proposal has been pending for months, with no definitive action from the SEC.

Many firms harbor concerns that staking rewards may be classified as securities or taxable income under current laws. CFTC Chairman Rostin Behnam continues to uphold the interpretation of Ether as a commodity; however, the lack of a definitive guide from the SEC leaves participants in decentralized finance (DeFi) and staking pools with significant uncertainties.

Image courtesy of GBX; chart via TradingView