U.S. Representative William Timmons has called on the Securities and Exchange Commission to release documents related to its evolving stance on Ether (ETH).
The letter cites confusion caused by the SEC’s inconsistent classification of ETH, especially between 2018 and 2024 highlighting what he describes as the agency’s “zigzagging approach” under the leadership of SEC Chair Gary Gensler.
Rep. Timmons Demands SEC Records on Ether’s Legal Status
In a letter dated June 10, Timmons asked SEC Chair Paul Atkins to provide records that explain the agency’s position on ETH’s classification.
He said the documents are needed to bring clarity to a regulatory environment that has confused both the public and lawmakers.
“Under prior leadership, the SEC refused to articulate a consistent, coherent view on how it believed the securities laws apply to digital assets,” Timmons wrote. “Its zigzagging approach to ETH is a case in point.”
Timmons referenced a 2018 speech by William Hinman, then director of corporate finance at the SEC, in which Hinman stated that Bitcoin and ETH were not considered securities. That statement shaped the market’s understanding of Ether’s legal status for years.
However, Timmons argued that the position shifted under Gensler. During an April 2023 congressional hearing, Gensler repeatedly declined to say whether the SEC considered ETH a security.
According to the letter, just days before that hearing, the agency had approved a formal investigation titled “In the Matter of ETH 2.0.”
The letter claims that the SEC’s refusal to confirm ETH’s classification while secretly opening a probe further clouded the situation.
The agency later closed that investigation in June 2024, shortly after it approved spot ETH exchange-traded funds (ETFs) in May, an action Timmons said would only be appropriate if ETH is *not* a security.
“These inconsistent actions have caused destabilizing confusion for millions of American crypto-market participants,” Timmons said.
He added that releasing the documents “is essential to ensuring that the digital asset industry, and the American public, understand the SEC’s historical approach.”
Timmons requested specific emails and documents, including internal SEC communications discussing Ethereum 2.0 and its classification under the Howey test.
Many of these documents were previously identified in a Freedom of Information Act (FOIA) request filed by History Associates on behalf of Coinbase in 2023.
The SEC denied that FOIA request, citing exemptions. Coinbase then sued the agency in June 2024, prompting a judge to order the release of some records.
Thousands of pages have since been made public, including one email that revealed prosecutors in New York had unsuccessfully asked the SEC for its official stance on ETH.
Timmons argues that the continued lack of transparency reinforces concerns about the SEC’s approach to crypto regulation.
“It will also bring transparency to the shadow ‘regulation by enforcement’ approach that, for years under the prior administration, hindered innovation and growth across the crypto industry,” he wrote.
The SEC has yet to publicly respond to the latest request.
Debate Over ETH’s Classification Heats Up as Congress Pushes for Clarity
Timmons’ request comes as the industry continues to grapple with the unresolved question: is Ethereum a security or a commodity?
The answer holds sweeping implications, not only for exchanges listing ETH, but also for Ethereum-based projects, recently approved ETH ETFs, and broader DeFi innovation.
If ETH is deemed a security, SEC registration would become mandatory, triggering regulatory chaos. If not, oversight would shift to the CFTC, aligning Ethereum with Bitcoin’s regulatory path.
Timmons argues that the stakes are too high for secrecy. In his letter, he urged transparency around the SEC’s shifting stance on ETH under Chair Gary Gensler, highlighting the need for Congress and the public to understand the agency’s reasoning.
His call reflects broader frustration with the SEC’s enforcement-first approach, which critics say has relied on outdated interpretations of the Howey Test and failed to provide consistent guidance.
The release of the Vaughn indices, now public via Coinbase, confirms the SEC has long held internal discussions on ETH’s classification.
And with momentum building behind the bipartisan CLARITY Act, designed to formally define digital assets and split regulatory authority, Timmons’ push could mark the beginning of long-overdue reform.
The industry may finally be edging closer to the regulatory clarity it has long demanded.
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