Pssssst! SEC Chair says Ethereum is (informally) not a security

In an interview on CNBC’s Squawk Box, the United States Securities and Exchange Commission (SEC) Chairman Paul Atkins shared insights on the newly passed GENIUS Act, the role of private equity in retirement plans and cryptocurrency investing strategies. Most notably, Atkins reaffirmed that the SEC has informally stated ETH is not a security under US Law, placing it in the same category as Bitcoin.

During the interview, Atkins stated:

The SEC has stated informally more than formally that Ether is not a security.

He further emphasised the Ethereum blockchain’s role in powering a broad range of digital currencies and stated that the market’s embrace of digital assets is “encouraging” and signals a “good future for development”.

The GENIUS Act

The discussion also touched on the GENIUS Act. Atkins clarified that payment stablecoins fall outside the SEC’s jurisdiction, landing instead under the purview of banking regulators. He called the stamp of approval on these digital assets a “watershed” moment for crypto, expected to lower costs, reduce risks and enable instantaneous settlements. The GENIUS Act, he suggested, will drive innovation and make US markets “the best in the world”.

401(k) reforms

Historically, private companies have been excluded from retirement plans like 401(k)s due to the absence of disclosure requirements. However, Atkins noted that private markets have grown substantially, with large pools of capital flowing into venture capital, private equity and private credit. There have been separate reports that President Trump will expand the mandate to include cryptoassets via executive order.

The SEC has previously made it difficult for individual investors to participate in private markets, so in collaboration with the Department of Labor, and following an executive order from President Trump, the SEC will be seeking to establish guardrails that would allow various registered products to be included in retirement plans, enabling long-term investment opportunities while addressing risks such as valuation, liquidity and fees. He stressed the role of fiduciaries in ensuring these products are appropriately managed.

Atkins also highlighted the challenges of operating as a public company, citing excessive disclosure requirements, litigation issues and governance issues which cause many to avoid public markets altogether. Atkins said there is a need to “rejuvenate the public markets” and “make IPOs great again”. That effort, he stated, must leverage the SEC’s regulatory powers to make public markets more attractive.

Atkins statements signal a growing recognition that digital assets are being embraced by the market, and that US regulators and many peers around the world are taking steps to embrace reform and innovation to cater for investor demand, remove regulatory uncertainty and cater for stronger consumer protections. The US is such a huge market that many regulators take their lead from the actions of the SEC, so it will be interesting to see how these comments influence the actions of other regulators around the world and parliaments working on digital asset regulation.

You can watch the full CNBC interview here.

Written by Steven Pettigrove and Emma Assaf with Michael Bacina