U.S. Representative William Timmons has urged the Securities and Exchange Commission (SEC) to disclose documents that clarify its changing position on Ether (ETH).
In a letter, Timmons expressed concerns over the confusion stemming from the SEC’s inconsistent classification of ETH, particularly between the years 2018 and 2024. He emphasized the agency’s “zigzagging approach” under SEC Chair Gary Gensler as a significant factor contributing to this uncertainty.
Rep. Timmons Seeks SEC Documents on Ether’s Legal Classification
Dated June 10, Timmons’ letter addressed to SEC Chair Paul Atkins requests records that outline the agency’s stance on ETH’s categorization. He stated that such documents are vital for clarifying a regulatory landscape that appears perplexing to both citizens 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 noted. “Its zigzagging approach to ETH is a case in point.”
In my letter to SEC Chair Atkins, I have requested documents concerning the SEC’s inconsistent treatment of ETH during Chair Gensler’s tenure and the Biden administration. The American public—and the crypto community—deserve transparency as Congress advances the CLARITY Act. :… pic.twitter.com/CmdCcuU3xc
— Congressman William Timmons (@RepTimmons) June 10, 2025
Timmons recalled a pivotal 2018 address by William Hinman, the then-director of corporate finance at the SEC, where he asserted that Bitcoin and ETH should not be classified as securities. This pronouncement significantly influenced the market’s perception of Ether’s legal status for several years.
However, the congressman contended that this perspective shifted under Gensler’s leadership. During a congressional hearing in April 2023, Gensler refrained from clarifying whether the SEC regarded ETH as a security.
Notably, just days before that hearing, the SEC had launched a formal investigation titled “In the Matter of ETH 2.0.”
Timmons’ letter claims that the SEC’s refusal to explicitly confirm ETH’s classification, coupled with the initiation of a probe, further complicated the regulatory environment.
The investigation was eventually closed in June 2024, shortly after the SEC approved spot ETH exchange-traded funds (ETFs) the previous month, a move Timmons asserted would be justifiable only if ETH is *not* classified as a security.
“These inconsistent actions have caused destabilizing confusion for millions of American crypto-market participants,” he said.
He further stressed the importance of releasing the requested documents to ensure that the digital asset sector and the public comprehend the SEC’s historical stance.
Timmons has specifically requested emails and documents, including internal communications regarding Ethereum 2.0 and its classification relative to the Howey test.
Many of these documents were initially sought through a Freedom of Information Act (FOIA) request made by History Associates on behalf of Coinbase in 2023.
The SEC denied this FOIA request on grounds of exemptions. In response, Coinbase filed a lawsuit against the agency in June 2024, which resulted in a judge ordering some records to be released.
Since then, thousands of pages of documents have been made available to the public, including an email indicating that prosecutors in New York had sought the SEC’s official position on ETH without success.
Timmons argues that the ongoing lack of transparency only heightens concerns regarding the SEC’s crypto regulatory approach.
“It will also bring transparency to the shadow ‘regulation by enforcement’ strategy that, for years under the prior administration, impeded innovation and growth across the crypto industry,” he remarked.
As of now, the SEC has not publicly responded to Timmons’ recent request.
Debate Over ETH’s Classification Intensifies as Congress Seeks Clarity
Timmons’ request arrives amidst ongoing discussions within the industry concerning the unresolved classification of Ethereum as either a security or a commodity.
The implications of this designation extend far beyond exchanges dealing in ETH; they affect Ethereum-based projects, newly approved ETH ETFs, and the broader decentralized finance (DeFi) landscape.
If ETH were to be classified as a security, it would necessitate SEC registration, leading to potential regulatory upheaval. Conversely, such a classification as a commodity would transition jurisdiction to the CFTC, aligning Ethereum’s regulatory framework with that of Bitcoin.
Pointing out the high stakes of maintaining secrecy, Timmons urged for transparency regarding the SEC’s evolving stance on ETH under Gensler’s leadership, advocating for a more informed understanding among Congress and the public.
This call for transparency reflects larger frustrations with the SEC’s enforcement-heavy strategy, which critics argue relies on outdated adaptations of the Howey Test, offering insufficient guidance.
The release of Vaughn indices, now available through Coinbase, suggests that the SEC has engaged in internal debates about ETH’s classification for some time.
With momentum gathering behind the bipartisan CLARITY Act aimed at defining digital assets and delineating regulatory responsibilities, Timmons’ initiative could signify a step toward necessary reforms.
In a time when clarity has been a demand from the industry, these developments might bring the regulatory certainty stakeholders have long sought.
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