 
 
The United States Securities and Exchange Commission (SEC) Chair Paul Atkin noted that the financial regulator does not view ETH as a security. This rests on long-term speculations that the Commission considers it under the Howey Test following bottleneck policies of the previous administration. At the moment, positive regulations under President Trump have spurred institutional and retail backing in several markets.
Paul Atkin Laud Massive Crypto Adoption
In a recent CNBC interview, Paul Atkin stated that ETH is not currently being viewed as a security by the financial regulator. Although informally, the SEC Chair added that Ethereum is critical to most blockchain networks in the long run. The network is touted as the largest decentralized finance (DeFi) blockchain with a growing number of developers.
“The SEC has stated informally more than formally that Ether is not a security and so ETH blockchain is a very key component for a lot of other digital currencies, so it’s up to companies to decide where they want to put their money and what sort of strategy they have obviously it’s not for me to tell them…”
Atkin lauded the increased institutional investment in crypto assets, adding that it provides a good future for innovation. The surge in digital asset adoption rests on several factors, including the SEC’s positive stance. Previously, the Commission filed several lawsuits against industry executives and firms, leading to an exodus from the US market. Additionally, the ongoing debate over the application of the Howey Test to crypto assets has worsened the situation.
Investors were skeptical of Ethereum and other assets as they could be labeled securities, attracting fresh lawsuits. Staking was a major issue within the network, although wealth managers previously tipped it as a catalyst for the network. A notable example was the Commission’s lawsuit against Ripple’s executives for allegedly offering unregistered securities to the public in 2020.
 
Since President Trump’s inauguration, the SEC has led market-friendly policy formation for the industry. The Crypto Task Force within the SEC held several round tables with a goal of ushering in positive rules. This effort, alongside Congress’s move to roll out new laws, has driven digital assets to new highs. SharpLink, BitMine, and other firms are accumulating huge ETH holdings, leading the altcoin rally. Last week, the former added 20,279 ETH after marking $68 million to build its strategic reserves.
Source: https://zycrypto.com/sec-chair-says-eth-is-not-a-security-amid-bullish-altcoin-momentum/