- Congressman Timmons challenges SEC’s ETH stance, demanding transparency to address years of inconsistent crypto regulations.
- SEC Chair Atkins hints at a regulatory shift favoring DeFi, proposing innovation exemptions and new rule changes for on-chain projects.
- Ethereum and DeFi tokens like Uniswap and Aave surged as Congress pushes for clarity and the SEC signals a softer crypto approach.
As per Coin Bureau, Congressman William Timmons has escalated scrutiny over the SEC’s inconsistent regulatory treatment of Ethereum. On June 10, 2025, he sent a formal letter to SEC Chairman Paul Atkins demanding retention of all documents relating to Ether’s classification.
This follows years of unclear guidance from the agency, especially under former Chair Gary Gensler. The letter highlights discrepancies in how the SEC has handled ETH’s legal status, signaling growing bipartisan interest in digital asset regulation. Meanwhile, Ethereum-based tokens surged, following signs that the SEC may now be shifting toward a more flexible DeFi policy framework.
Lawmaker Presses SEC Over ETH Classification
House Financial Services Committee member Timmons demanded the SEC to reveal its ETH regulatory stance. He underlined how crucial transparency is to maintaining both legal certainty and public trust. Additionally, the letter makes reference to records that were acquired via a FOIA request that Coinbase submitted.
In 2018, a senior SEC official said ETH was not a security. However, Gensler later refused to confirm or deny that position. Besides avoiding direct answers, Gensler oversaw a formal investigation into ETH’s classification just days before testifying to Congress. This move raised further questions about the SEC’s consistency.
Moreover, previous SEC leadership failed to offer coherent interpretations of securities laws as they apply to crypto assets. Consequently, market participants remain uncertain about legal obligations under federal law.
SEC Signals Softer Stance on DeFi Projects
SEC Chair Paul Atkins attended a discussion on DeFi in Washington, D.C., on June 9, 2025. Atkins unveiled proposals for a “innovation exemption” to facilitate on-chain product introductions during the event. The SEC is also considering changing its rules to make it easier for decentralized financial firms to comply.
Atkins emphasized that DeFi reflects core American values like innovation, property rights, and economic liberty. His statements marked a sharp contrast to Gensler’s rigid approach. The market responded swiftly. Ethereum rose 4.32% to $2,782. Uniswap climbed 17% to $8. Aave jumped 6% to $308. Sky surged 15% to $0.88.
Hence, congressional oversight and a potential regulatory pivot have injected momentum into the DeFi sector. Moreover, the push for regulatory clarity could signal a new era for U.S. crypto innovation.
