The chairman of the U.S. Securities and Exchange Commission, Paul Atkins, has confirmed that Ethereum is not considered a security, thus exempting it from stringent regulations.
Ethereum's Status According to SEC
Paul Atkins emphasized that Ethereum is not a security and that securities laws do not apply to it. He noted that the SEC has not formulated an official position on this matter but informally classifies Ethereum alongside Bitcoin as commodities. The significance of the ETH blockchain for many other cryptocurrencies was also highlighted.
Comparison with XRP and Consequences
In May, the New York Attorney General requested that the SEC officially declare Ethereum as a security during the prosecution of KuCoin. Shamiso Maswoswe, chief of the Investor Protection Bureau, stated that it would be beneficial for investor protection. If declared a security, Ethereum could face challenges similar to those of Ripple, which has faced consequences from SEC lawsuits.
Institutional Investor Interest in ETH
Recent reports indicate that institutional investors are actively embracing Ethereum. Since July, over $1 billion has flowed into Ethereum ETFs, reflecting growing interest from Wall Street, with BlackRock leading the charge. ETH has reached new all-time highs, with prices climbing to $3,782 and a more than 25% increase over the past week. Atkins acknowledged this positive trend and the potential for further development in the sector.
The announcement regarding Ethereum's status as not a security could significantly influence its perception within the cryptocurrency community and attract additional investments.
