Congressman Timmons Demands SEC Transparency on ETH’s Regulatory Status Amid CLARITY Act Push
Washington, D.C. – June 11, 2025 — In a formal letter addressed to U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins, Congressman William R. Timmons (R-SC) has requested the release of key documents outlining the SEC’s historical position on Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
The letter, sent on June 10, comes as Congress advances the CLARITY Act, aimed at providing definitive legal guidance for digital assets. Congressman Timmons, a member of the House Financial Services Committee, emphasized the importance of consistency and transparency in regulatory oversight as lawmakers continue working on comprehensive market structure legislation.
Congressman Timmons Demand for Disclosure
Congressman Timmons letter specifically calls for the release of SEC documents that have been identified but withheld under the Biden Administration in response to a Freedom of Information Act (FOIA) request. That request—filed by History Associates on behalf of Coinbase, Inc.—sought internal records reflecting the agency’s evolving view of Ethereum’s legal classification.
“Disclosure of these documents is essential to ensuring that the digital asset industry—and the American public—understand the SEC’s historical approach to interpreting and enforcing the securities laws,” Timmons wrote.
SEC’s Inconsistent Stance on ETH
The Congressman Timmons criticized the SEC’s prior leadership for failing to provide a coherent regulatory position on ETH and other digital assets. In 2018, then-SEC Director of Corporation Finance William Hinman publicly stated that ETH was not considered a security. However, under former Chair Gary Gensler, the agency adopted a far less clear stance.
In congressional testimony from April 2023, Gensler repeatedly declined to answer direct questions about ETH’s status. It later emerged that, just days before that testimony, the SEC had approved a formal investigation into whether Ethereum should be classified as a security.
“This zig-zagging approach not only confuses market participants but undermines confidence in our regulatory institutions,” Timmons noted.
A Step Toward Regulatory Clarity
The renewed push for transparency comes at a critical time for the crypto industry, as lawmakers work to establish a consistent regulatory framework that fosters innovation while protecting investors. The CLARITY Act seeks to define which digital assets fall under the SEC’s jurisdiction and when those assets should be considered securities.
Timmons’ letter underscores the need for historical context as policymakers navigate the complex and rapidly evolving digital asset space.
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