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Securities and Exchange Commission (SEC) Chairman Paul Atkins told CNBC’s “Squawk Box” on July 21 that the bureau has “stated informally much than formally” that Ethereum (ETH) is not a security, but deciding whether to clasp the token successful treasury reserves “is up to companies to decide.”
Atkins added that Ethereum is “a precise cardinal constituent for a batch of different integer currencies,” and it is encouraging to spot the marketplace embracing assets specified arsenic ETH.
He further stated:
“And I deliberation that provides a bully aboriginal for development.”
Corporate treasuries pivot to Ethereum
Atkins’ remarks travel arsenic companies are tapping Ethereum to their treasuries, and adjacent swapping different crypto for ETH successful immoderate cases.
Bit Digital announced connected July 7 that it had completed a three-month transition from a Bitcoin (BTC)-only treasury to an Ethereum-only treasury, selling 280 BTC and raising astir $172 cardinal done an underwritten stock sale, earlier purchasing further ETH.
According to its filing, the miner’s equilibrium expanse roseate from 24,434 ETH connected March 31 to astir 100,603 ETH.
Meanwhile, SharpLink Gaming disclosed on July 15 that it present holds 280,706 ETH. This treasury is presently the largest known firm position, valued astatine $867 million, surpassing adjacent the Ethereum Foundation.
Between July 7 and July 13, the steadfast purchased 74,656 ETH astatine an mean terms of $2,852 and reported that 99.7% of its holdings are staked, generating 415 ETH since June 2.
Chairman Joseph Lubin framed the reserve strategy arsenic “collective capitalism” built connected a permissionless network.
Stablecoins and status access
Atkins turned to the regulatory landscape, noting that caller national attraction to stablecoins represents the “stamp of approval” that could alteration near-instant transportation versus outgo for securities.
He argued that on-chain colony utilizing regulated, dollar-backed tokens tin little counterparty hazard and transaction costs crossed US superior markets.
The interrogation besides covered status plans. Atkins said idiosyncratic investors proceed to question vulnerability to backstage funds, including integer plus strategies, wrong 401(k)s.
He urged collaboration betwixt the SEC and the Department of Labor to found valuation, liquidity, and interest standards, which would alteration fiduciaries to connection registered products to semipermanent savers.
“We request to marque it truthful that idiosyncratic investors are relying connected fiduciaries,” helium said.
The station SEC seat says Ethereum not a information and praises its pivotal relation successful integer currencies appeared archetypal connected CryptoSlate.
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