Ethereum News Today: SEC Chairman: Ethereum Not a Security, Encourages Corporate Adoption

SEC Chairman Paul Atkins stated on July 21 that the agency has informally indicated that Ethereum (ETH) is not considered a security. This statement was made during an interview on CNBC’s “Squawk Box.” Atkins emphasized that the decision to hold Ethereum in treasury reserves is ultimately up to individual companies. He highlighted Ethereum's pivotal role in the digital currency ecosystem, noting that it is a key component for many other digital currencies. Atkins expressed encouragement at the market's embrace of assets like ETH, suggesting a positive outlook for future development in the sector.

Atkins' remarks come at a time when several companies are increasingly incorporating Ethereum into their treasuries. Bit Digital, for instance, completed a transition from a Bitcoin-only treasury to an Ethereum-only treasury over a three-month period. The company sold 280 BTC and raised approximately $172 million through an underwritten share sale before purchasing additional ETH. SharpLink Gaming also disclosed that it now holds 280,706 ETH, making it the largest known corporate position in Ethereum, valued at $867 million. Between July 7 and July 13, SharpLink purchased 74,656 ETH at an average price of $2,852, with 99.7% of its holdings staked, generating 415 ETH since June 2. Chairman Joseph Lubin framed this reserve strategy as “collective capitalism” built on a permissionless network.

Atkins also addressed the regulatory landscape, noting that recent federal attention to stablecoins represents a “stamp of approval” that could enable near-instant delivery versus payment for securities. He argued that on-chain settlement using regulated, dollar-backed tokens can lower counterparty risk and transaction costs across US capital markets. The interview also covered retirement plans, with Atkins stating that individual investors continue to seek exposure to private funds, including digital asset strategies, inside 401(k)s. He urged collaboration between the SEC and the Department of Labor to establish valuation, liquidity, and fee standards, which would enable fiduciaries to offer registered products to long-term savers. Atkins emphasized the importance of ensuring that individual investors rely on fiduciaries for their investment decisions.