Editor: Peter_Techub News
Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), recently stated that Ethereum ($ETH) is 'not a security', and securities laws do not apply to the Ethereum blockchain. This statement has allowed Ethereum to successfully escape the regulatory predicament faced by XRP, enhancing market confidence in Ethereum. Atkins further pointed out that the SEC has informally classified Ethereum as a commodity, like Bitcoin, rather than a security. He emphasized that the Ethereum blockchain is a key component of many other digital currencies and cannot be separated from the cryptocurrency ecosystem.
Atkins stated that the company has the freedom to decide where to allocate funds and choose strategies, and he has no authority to interfere. This supportive stance towards cryptocurrencies releases positive signals for the industry's development. He believes that the freedom of choice for enterprises will lay a good foundation for the future development of cryptocurrencies. Atkins also expressed that the increasing acceptance of cryptocurrencies like Ethereum by corporate entities and institutional investors is 'encouraging' and predicts that this indicates a 'bright future' for industry development and innovation.
At the same time, Ethereum successfully avoided the regulatory predicament of XRP. Looking back to May of this year, the New York Attorney General had requested the SEC to publicly declare Ethereum as a security, rather than a commodity, in its lawsuit against KuCoin in 2023. Shamiso Maswoswe, the head of the Investor Protection Bureau, stated that whether Ethereum is a security is not a decisive factor in the case, but recognizing it as a security would help protect investors. However, the SEC ultimately did not adopt this recommendation. In contrast, XRP was previously classified as a security due to SEC allegations that it raised over $1.3 billion through the unregistered sale of XRP, leading it into litigation disputes, being delisted from exchanges, and a loss of investor confidence. Nevertheless, XRP still maintains a leading position in the market, demonstrating its resilience.
In terms of market performance, Ethereum is being eagerly sought after by institutional investors. Since July, inflows into Ethereum ETFs have exceeded $1 billion, with BlackRock standing out in particular. The 3-4% yield brought by ETF subscriptions makes Ethereum more attractive for conservative portfolios. Recently, the ETH ETF broke the record for single-day inflows, reaching an all-time high, and is gradually narrowing the gap with Bitcoin ETF size. Driven by this positive news, the price of Ethereum has risen to $3,782, with an increase of over 25% in the past week, making it one of the best-performing altcoins.
Meanwhile, XRP's trading price is $3.59, with a daily increase of 3.73%, up 22% over the past seven days, and a daily trading volume growth of 26% to $10 billion, showing continued investor interest. The strong performance of ETH and XRP together leads the altcoin market surge, and the increased confidence from institutions may determine the direction of the next cryptocurrency bull market.
Paul Atkins's clear statement has removed regulatory obstacles for Ethereum, solidifying its status as a commodity. Meanwhile, Ethereum and XRP have shown strong market vitality driven by institutional funds, instilling confidence in the future development of the cryptocurrency industry.
