SEC’s chair Paul Atkins says that Ethereum is not a security

Paul Atkins, chairman of the US Securities and Exchange Commission (SEC), has clarified that Ethereum is not a security. He said that securities laws will not apply to Ethereum. However, the SEC is yet to take a formal stance.

According to Atkins, the SEC is informally classifying Ethereum in the same category as Bitcoin, branding them as commodities. He 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.”

He also said that the ETH blockchain has created the foundation for many cryptocurrencies. Therefore, it cannot be removed from that bracket.

The pro-crypto chairman also said that the company has the freedom to decide where they want to put their money and what sort of strategy they have, and that it wasn’t his place to tell them. According to him, this freedom will provide a good future for development.

Ethereum escapes Ripple’s fate

In May, it was revealed that the New York State Attorney General asked the SEC to openly declare that  Ethereum was a security, not a commodity, during the state’s prosecution of KuCoin in 2023.

Shamiso Maswoswe, chief of the Investor Protection Bureau for the New York AG, said, “We would like to request that the SEC file an amicus in support of the argument that Ether is a security.”

She added, “Whether it is or not will not be dispositive in our case (we have authority over both securities and commodities) — but I think it would be beneficial to investor protection to get a court to hold that Ether is a security.”

This was going to drag Ethereum to a path well known by Ripple. Initially, the SEC sued Ripple, claiming it raised over $1.3 billion through unregistered XRP sales. It classified XRP as a security. 

Since then,  the legal battle has created uncertainty, impacting investor confidence and hindering XRP’s adoption. In addition, several exchanges delisted or suspended XRP trading due to the SEC’s claims. 

A coin that had great potential ended up being average. However, with all the strain, the coin remained at the top although its competitors ended up too far off. 

ETH and XRP lead the altcoin season

This news comes at a time when institutional investors are embracing ETH. According to reports, Wall Street is piling into $ETH: $1B+ ETF inflows since July, BlackRock leading the charge. 

Ethereum Big Institutional Play

Wall Street is piling into $ETH: $1B+ ETF inflows since July, BlackRock leading the charge.

Staking adds 3–4% yield, making ETH attractive for conservative portfolios.

Growing institutional confidence could define the next bull run. pic.twitter.com/bSK0VzPNaQ

— InvestingHaven (@InvestingHaven) July 20, 2025

In addition, ETH ETFs are set to attain new all-time highs to catch up with Bitcoin ETFs after just breaking a new daily record for inflows. The news has increased Ethereum’s price to $3,782, making it the biggest altcoin to rise more than 25% in the last week.

Atkins acknowledged the trend of corporate entities embracing ETH and other cryptocurrencies is “encouraging.” He added that the soaring institutional interest predicts a “good future” for development and innovation in the sector.

On the other hand, XRP is trading at  $3.59 with a 3.73% daily increase, a 22% increase in the last seven days. Also, its daily trading volume increased by 26%, reaching $10 billion. This increase is an indicator of investor interest in the token. 

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