SEC’s Project Crypto Signals Ethereum Is Not a Security
SEC Chairman Paul S. Atkins has launched “Project Crypto,” an initiative to modernize U.S. securities rules for on-chain markets. In a Washington address, he stated most crypto assets are not securities and noted that Ether (ETH) is informally considered a non-security. The SEC will draft bright-line rules to classify tokens as digital commodities, collectibles, or stablecoins. It also plans a “Reg Super-App” for trading, staking, and lending, updated custody standards, and exemptions for tokenized securities under standards like ERC-3643. Ethereum developer Eric Conner hailed the shift as a “rocket under Ethereum,” forecasting increased institutional ETH allocations and deeper DeFi integration. Project Crypto could cement Ethereum’s role as a preferred settlement layer in U.S. finance.
Bullish
By formally clarifying that Ethereum is not a security, the SEC removes a longstanding regulatory overhang. This clarity mirrors past catalysts—such as Bitcoin ETF approvals—that fueled price rallies. In the short term, traders are likely to bid up ETH on positive sentiment and reduced legal risk. Over the long term, clear token classification, modern custody rules, and regulatory safe harbors will encourage institutional ETH allocations and on-chain market growth. Deeper DeFi–Wall Street integration under “Project Crypto” can strengthen liquidity and stability. Overall, these developments point to sustained bullish momentum for Ethereum.