SEC chair says Ethereum not a security and praises its pivotal role in digital currencies

Securities and Exchange Commission (SEC) Chairman Paul Atkins told CNBC’s “Squawk Box” on July 21 that the agency has “stated informally more than formally” that Ethereum (ETH) is not a security, but deciding whether to hold the token in treasury reserves “is up to companies to decide.”

Atkins added that Ethereum is “a very key component for a lot of other digital currencies,” and it is encouraging to see the market embracing assets such as ETH.

He further stated:

“And I think that provides a good future for development.”

Corporate treasuries pivot to Ethereum

Atkins’ remarks come as companies are tapping Ethereum to their treasuries, and even swapping other crypto for ETH in some cases.

Bit Digital announced on July 7 that it had completed a three-month transition from a Bitcoin (BTC)-only treasury to an Ethereum-only treasury, selling 280 BTC and raising approximately $172 million through an underwritten share sale, before purchasing additional ETH. 

According to its filing, the miner’s balance sheet rose from 24,434 ETH on March 31 to roughly 100,603 ETH.

Meanwhile, SharpLink Gaming disclosed on July 15 that it now holds 280,706 ETH. This treasury is currently the largest known corporate position, valued at $867 million, surpassing even the Ethereum Foundation.

Between July 7 and July 13, the firm purchased 74,656 ETH at an average price of $2,852 and reported that 99.7% of its holdings are staked, generating 415 ETH since June 2.

Chairman Joseph Lubin framed the reserve strategy as “collective capitalism” built on a permissionless network.

Stablecoins and retirement access

Atkins turned to the regulatory landscape, noting that recent federal attention to stablecoins represents the “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. Atkins said 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.

“We need to make it so that individual investors are relying on fiduciaries,” he said.

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