Congressman William Timmons demands SEC release internal Ethereum documents to clarify changing legal stance.

Timmons' letter asks SEC for emails and records discussing Ethereum's classification as a security.

A U.S. lawmaker has demanded that the Securities and Exchange Commission (SEC) release internal documents related to its stance on Ethereum (ETH).

What Happened

U.S. Representative William Timmons from South Carolina is urging the SEC to be more transparent with the public and crypto market participants. This follows years of what he described as a “zigzagging” behavior by the agency.

In a letter to SEC Chair Paul Atkins, Timmons expressed concern over the SEC’s changing legal classification of ETH.

“After years of broadly hinting at an agency-wide view of crypto assets and tying the fate of the crypto industry to the agency’s internal thinking, SEC staff have finally put their view of the relevant legal principles into writing,” a portion of the letter read.

These documents were previously identified in a lawsuit with Coinbase (NASDAQ:COIN) but not shared. They include:

* SEC internal emails and records from 2018 discussing the agency’s stance on cryptocurrencies and relevant legal frameworks. This period is crucial as SEC officials, including Director of Corporate Finance William Hinman, had begun offering the agency’s view on the status of cryptocurrencies. In 2018, Hinman stated that, in his view, Ether and Bitcoin would not be treated as securities.

* Notes or summaries of meetings of the SEC’s Division of Enforcement and Division of Corporation Finance to discuss cryptocurrencies, especially after July 2023, when the SEC announced sanctions against several crypto firms.

* Any internal SEC documents created since January 2024 discussing the crypto provisions in the 2024 omnibus spending bill, which are also known as the "Clarity Act" provisions.

Importance Of The Matter

Timmons said that releasing these records will help Congress, the crypto industry, and the public to better understand how the SEC’s view on Ethereum has changed. He also believes that this will shed light on what he calls the SEC’s secretive “regulation by enforcement” strategy — one that has slowed innovation and confused investors.

“As Congress moves forward with the CLARITY Act to provide much-needed legislation on cryptocurrencies, it’s critical that we also understand the administrative agency’s actions in handling this emerging sector,” said Rep. Timmons. “The American people—and the crypto community—deserve transparency.”