Congressman William Timmons, a Republican from South Carolina, has fired off a letter to newly appointed SEC Chair Paul Atkins, demanding documents that shed light on the agency’s inconsistent handling of Ethereum (ETH) under former Chair Gary Gensler.
Sent on June 10, 2025, this move comes amid mounting pressure on the SEC to clarify its crypto policies, especially as the CLARITY Act advances in Congress.
I just sent a letter to SEC Chair Atkins requesting documents on the SEC’s inconsistent treatment of ETH under Chair Gensler and the Biden administration. The American people—and the crypto community—deserve transparency as Congress moves forward with the CLARITY Act.
🔗:… pic.twitter.com/CmdCcuU3xc
— Congressman William Timmons (@RepTimmons) June 10, 2025
The request highlights years of regulatory uncertainty that have left the crypto community and investors in limbo. The issue traces back to a contentious 2023 congressional hearing where Gensler dodged questions about whether ETH qualifies as a security. His refusal to provide a clear answer fueled debates over the SEC’s approach, which critics call erratic.
This ambiguity contrasts sharply with 2018, when William Hinman, then the SEC’s director of corporate finance, declared Bitcoin and ETH were not securities. That statement shaped early market perceptions, but recent shifts have raised eyebrows.
Recent legal battles have added fuel to the fire.
This past year, Coinbase sued the SEC after the agency denied a Freedom of Information Act (FOIA) request for internal documents.
A judge ordered the release of thousands of pages, including emails hinting at unresolved debates over ETH’s classification. One notable revelation: New York prosecutors sought the SEC’s official stance on ETH in 2023, only to be met with silence.
Timmons’s letter specifically targets these withheld records, including communications about Ethereum 2.0, to uncover the agency’s reasoning.
The CLARITY Act, poised to be approved by the Senate, aims to define digital asset regulations, potentially splitting oversight between the SEC and the Commodity Futures Trading Commission (CFTC).
If ETH is deemed a security, it would require SEC registration; if a commodity, the CFTC would take over. This uncertainty affects billions tied to Ethereum-based projects and recently approved ETH ETFs.
Atkins, appointed by President Trump, is a known crypto advocate, a stark contrast to Gensler’s regulation by enforcement tenure.
In May 2025, the SEC issued guidance stating protocol staking isn’t a securities transaction, raising hopes for ETH staking ETF approvals by year-end.
Timmons’ request could set a precedent for congressional oversight, especially as digital assets integrate into mainstream finance.