SEC Chair Paul Atkins announces plans for all U.S. markets to move on-chain within two years, positioning Ethereum to host up to $300 trillion in tokenized assets as technical indicators and Layer-2 growth signal bullish momentum ahead.
Ethereum bulls are celebrating as SEC Chair Paul Atkins projects the entire U.S. financial market will migrate to blockchain infrastructure within two years. The announcement positions ETH as the primary settlement layer for tokenized real-world assets worth hundreds of trillions of dollars.
According to @Ethprofit on X, SEC Chair Paul Atkins stated that all U.S. markets will be on-chain within two years—a development that could dramatically benefit Ethereum. The platform already hosts 99% of on-chain assets. As @Ethprofit emphasized on X, the implications extend far beyond just the $65 trillion U.S. stock market. When adding real estate, real-world assets, Treasuries, and USD, the total value moving onto Ethereum could reach $300 trillion.
Atkins outlined during recent speeches that tokenization represents the critical infrastructure needed to modernize American capital markets. He described the technology as essential for improving transparency, reducing settlement delays, and enhancing risk management across financial systems.
The SEC Chairman emphasized that tokenized securities will remain classified as securities under federal law. However, he clarified that digital collectibles, commodities, and utility tokens fall outside SEC jurisdiction. This distinction provides regulatory clarity for projects building on Ethereum.
Technical Momentum Builds as Price Tests Critical Support
While regulatory developments fuel optimism, Ethereum technical structure shows strength at key support levels. According to @rektcapital on X, historical CME gaps can act as dynamic supports for ETH. The cryptocurrency has demonstrated price-strength confirmation at this demand region, enabling recent upward moves.
@rektcapital explained on X that if ETH achieves a weekly close above the CME gap top and successfully retests it as new support, this could confirm trend continuation moving forward. Similar patterns in previous cycles, marked by green circles on price charts, preceded significant rallies.
Recent market data shows Ethereum trading around $3,106 with technical indicators improving. The Relative Strength Index rebounded to 50 from an oversold reading of 28 last week, highlighting accelerating buying strength and renewed upside potential.
CME futures gaps between various price levels remain important focal points for traders. The cryptocurrency filled its recent gap near $2,900, demonstrating the historical tendency for these technical levels to attract price action. Additional unfilled gaps at higher levels could serve as magnets for future price movements.
Layer-2 Critics Miss Long-Term Network Effects Strategy
Investment strategist Tom Lee issued a warning about critics underestimating Ethereum Layer-2 scaling solutions. As @CryptosR_Us shared on X, Tom Lee argues that people are making a classic mistake with Ethereum L2s by using static thinking in a system that continues scaling.
Tom Lee drew parallels to Facebook's mobile strategy in 2007. According to @CryptosR_Us on X, critics back then dismissed Facebook mobile because it wasn't charging fees. What they failed to recognize were network effects, dominance, and scale—the same dynamics playing out with Ethereum today.
The Fundstrat strategist emphasized that maximizing fees early isn't the priority. As @CryptosR_Us noted on X, the strategy focuses on letting Layer-2 networks grow, allowing stablecoins to scale, and positioning the ecosystem as the default standard. Monetization comes after establishing market dominance.
Layer-2 adoption has accelerated throughout 2025. Total value locked across Ethereum Layer-2 networks surpassed $32 billion, representing a 170% increase year-to-date. Major protocols including Arbitrum, zkSync Era, and Base continue attracting users from competing chains.
The growth in Layer-2 usage directly supports Ethereum as the settlement layer. Daily transactions across rollups now number in the millions, with transaction costs reduced by approximately 80-90% compared to mainnet activity. This improved cost structure expands accessibility for everyday users.
Tom Lee's forecast projects Ethereum could reach between $5,500 and $15,000 by year-end 2025 under optimal conditions. His analysis points to rising on-chain usage, Layer-2 expansion, regulatory clarity, and institutional adoption as primary catalysts.
On-chain data reveals transaction volume increased 44% year-over-year in August 2025, reaching $320 billion compared to $222 billion in the same period of 2024. Daily active addresses now exceed one million—a significant milestone demonstrating genuine user expansion.
The stablecoin market, predominantly built on Ethereum, continues expanding rapidly. This represents a fundamental use case driving consistent demand for the network. New U.S. tokenization rules, including the GENIUS Act implemented in July 2025, establish compliance frameworks that benefit stablecoins and tokenized securities.
Project Crypto, the SEC's initiative under Atkins, aims to integrate blockchain technology safely into traditional financial markets. The program will introduce an innovation exemption allowing companies to pilot tokenization projects under supervised conditions. This sandbox approach enables both established firms and startups to experiment responsibly.
The regulatory framework distinguishes between token types. Bitcoin and Ethereum receive classification as digital commodities rather than securities. This determination removes regulatory uncertainty that previously constrained development.
The shift toward blockchain-based settlement could reduce discrepancies between trade execution, payment, and final settlement. Automated processes through smart contracts may minimize systemic risk while improving operational efficiency. These infrastructure improvements position American markets for continued global leadership in financial technology.
Institutional participation continues rising. Companies are establishing treasury positions in ETH, recognizing its role as a settlement layer. This trend mirrors the earlier corporate adoption of Bitcoin as a treasury asset, though Ethereum offers additional utility through smart contract functionality.
The combination of regulatory support, technical strength, and expanding Layer-2 infrastructure creates conditions for sustained growth. Whether Ethereum reaches projected price targets depends on continued execution across development, adoption, and regulatory fronts.
Key Takeaways:
- SEC Chair Atkins projects entire U.S. financial market moving on-chain within 2 years, benefiting Ethereum infrastructure
- Technical analysis shows ETH maintaining strength at CME gap support levels with trend continuation signals emerging
- Tom Lee warns critics underestimate Ethereum Layer-2 scaling strategy focused on network effects over immediate fees
#Ethereum #Tokenization #SECRegulation #Layer2Scaling #CryptoNews
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SEC Signals $300T Shift to Ethereum Blockchain
SEC Chair Paul Atkins projects U.S. markets moving on-chain within 2 years. Ethereum hosts 99% of on-chain assets as $300T tokenization wave begins.