Key Takeaways
SEC Chairman Paul Atkins informally classified Ethereum as a commodity, not a security, boosting regulatory clarity and market optimism. ETH’s price saw a brief dip, but strong bullish momentum continued with potential for a breakout past $4.1k.
In a notable development that could shape the future of crypto regulations, SEC Chairman Paul Atkins has stated that Ethereum [ETH] will not be treated as a security under existing securities laws.
Now, the agency has not yet issued an official ruling yet. However, Atkins’ remarks suggest an informal consensus within the SEC that places Ethereum in the same regulatory bracket as Bitcoin, as a commodity rather than a security.
In a recent interview with CNBC, Atkins said,
“Similar to Bitcoin, I mean the SEC has stated informally more than formally that Ether is not a security. And so but it’s obviously the ETH blockchain is a very key component for a lot of other digital currencies.”
Atkins’ clarification for Ethereum
Atkins emphasized that Ethereum underpins a broad ecosystem of cryptocurrencies and decentralized applications, positioning it as more than just a standalone asset.
He highlighted its foundational role in the crypto space, noting its systemic importance.
Additionally, he maintained that companies should have the autonomy to shape their own investment strategies, asserting that regulatory bodies should not dictate where they choose to allocate capital.
His remarks reflect a pro-innovation position, signaling a potential shift towards regulatory flexibility for major blockchain platforms.
While formal SEC guidance is still pending, Atkins’ comments offer a glimpse into the agency’s evolving view. They also provide hope for clearer, more crypto-friendly regulations in the near future.
Community reactions
As expected, the crypto community hailed this update, as noted by DustyBC Crypto. He said,
“CLEAR SIGNAL FOR THE FUTURE OF ETHEREUM IN THE U.S.”
Echoing similar sentiments, another page, DeFi Planet, added,
“Clear words. Major clarity. The #Ethereum narrative just got a major boost.”
Ethereum’s price action
At the time of writing, ETH was trading at $3,696.98, down 2.88% over the past 24 hours, according to CoinMarketCap. However, the weekly chart underlined notable gains of 23.41%, highlighting strong upward momentum despite some depreciation on the charts.
Seeing this, Alva took to X and issued a word of caution.
“Social buzz is overwhelmingly bullish, but technicals show we’re flirting with overbought territory, so don’t be shocked by some profit-taking or chop in the near term.”
Worth pointing out, however, that despite the pullback, Ethereum’s RSI seemed to be holding above the neutral 57-mark – A sign of sustained bullish strength.
Source: Trading View
With renewed investor confidence and historical resistance at $4.1k within sight, market sentiment suggests ETH could be gearing up for another breakout.
Such a rally might finally reverse the long-standing bearish trend since late 2024.