Republican Representative William Timmons has requested that SEC Chair Paul Atkins provide documents detailing the agency’s past treatment of Ether during the tenure of Gary Gensler under the Biden administration.
In a letter sent Tuesday, Timmons called for “specific documents” outlining the SEC’s historical stance on Ether, saying they are essential for Congress and the public to better understand the agency’s prior approach.
“Under previous leadership, the SEC failed to present a consistent or coherent interpretation of how securities laws apply to digital assets. Its shifting position on ETH is a prime example,” Timmons wrote.
Gensler raised questions about ETH’s regulatory status during his tenure as chair
Timmons pointed out that in 2018, William Hinman, then director of the SEC’s Division of Corporate Finance, stated that the agency would not classify Bitcoin or Ether as securities. However, he argued that Gensler, during his time as chair, “cast doubt on ETH’s status” by repeatedly avoiding direct answers about the SEC’s stance during an April 2023 congressional hearing.
Timmons added that, as later revealed, the SEC had already authorized a formal investigation into whether Ether is a security just days before Gensler’s testimony.
A year later, the SEC greenlit Ether exchange-traded funds — a move Timmons argued “would only be appropriate if ETH is not a security.” Just weeks after that approval, the SEC quietly closed its investigation into Ether.
“These constant reversals created destabilizing confusion for millions of participants in the U.S. crypto market,” he said.
Letter bolsters Coinbase’s FOIA request
Timmons’ letter comes on the heels of a 2023 Freedom of Information Act (FOIA) request supported by crypto exchange Coinbase, seeking records on the SEC’s stance toward Ethereum. After the SEC denied the request, Coinbase filed a lawsuit against the agency in June 2024, alleging FOIA violations.
A judge subsequently ordered the SEC to release specific documents, thousands of which Coinbase later published online — including one revealing that New York prosecutors had unsuccessfully sought the SEC’s opinion on Ethereum’s status.
