tl;dr
SEC Chairman Paul Atkins stated that Ethereum is informally not considered a security but companies must independently decide on holding ETH in their treasuries. Firms are shifting treasury strategies towards Ethereum, with Bit Digital moving from Bitcoin to Ethereum holdings and SharpLink Gaming ho...
Securities and Exchange Commission (SEC) Chairman Paul Atkins shared insights on Ethereum (ETH) during an interview on CNBC’s “Squawk Box” on July 21, indicating the agency’s informal stance that ETH is not considered a security. However, he emphasized that companies must decide independently whether to hold ETH in their treasury reserves. Atkins highlighted Ethereum’s pivotal role in the broader digital currency ecosystem and expressed optimism about its future development as the market increasingly embraces such assets.
Corporate treasury strategies are shifting, with firms moving towards Ethereum holdings. Bit Digital completed a transition from a Bitcoin-only treasury to an Ethereum-only treasury, selling 280 BTC and raising approximately $172 million to purchase additional ETH. This move significantly increased its ETH holdings from 24,434 to about 100,603. SharpLink Gaming now holds the largest known corporate Ethereum treasury at 280,706 ETH, valued at $867 million, surpassing even the Ethereum Foundation. The company reported high staking activity with 99.7% of its holdings staked, generating additional ETH income, and its chairman described this approach as “collective capitalism” on a permissionless network.
Atkins also discussed the regulatory environment around stablecoins, describing recent federal focus as a “stamp of approval” that could enable near-instant securities settlement using regulated, dollar-backed tokens. This innovation promises to reduce counterparty risk and transaction costs within U.S. capital markets. Additionally, regarding retirement investments, Atkins noted increasing investor interest in private funds, including digital asset strategies within 401(k) plans. He advocated for collaboration between the SEC and the Department of Labor to develop clear standards on valuation, liquidity, and fees, which would empower fiduciaries to offer registered digital asset products to long-term savers, reinforcing the importance of fiduciary responsibility for individual investors.