Congress Demands SEC Docs On Why XRP Targeted While Ethereum Cleared

Congress is turning up the heat on the U.S. Securities and Exchange Commission (SEC), demanding full transparency on why Ethereum (ETH) was effectively given a regulatory “free pass” while Ripple’s XRP was subjected to a years-long legal battle. This renewed scrutiny follows rising public frustration over inconsistent crypto enforcement and a growing call from lawmakers for a fair and transparent regulatory framework. The development was recently highlighted in a post by crypto commentator Xaif in an X community. Xaif outlined a striking timeline: in 2018, the SEC publicly said ETH wasn’t a security . By 2023, the agency dodged direct questions on Ethereum’s status. Now, in 2025, pressure is mounting for answers. “Transparency is coming,” Xaif noted, as Congress demands internal SEC documents that could shed light on this regulatory double standard. Ethereum’s 2018 Regulatory Pass The controversy dates back to June 2018, when William Hinman, then Director of the SEC’s Division of Corporation Finance, declared in a now-infamous speech that ETH was “sufficiently decentralized” and did not qualify as a security. Though never adopted as official SEC policy, this statement heavily influenced market perception and regulatory treatment of Ethereum. BREAKING: ETH got a free pass. XRP got sued. Congress now demands SEC docs on why ETH was cleared while XRP was targeted. 2018: SEC says ETH isn’t a security 2023: SEC dodges ETH questions 2025: Time for answers. Transparency is coming. #XRP #ETHGate #Ripple #Crypto … pic.twitter.com/A7Hw1rLaai — 𝕏aif | (@Xaif_Crypto) June 11, 2025 However, during the Ripple case, documents revealed through court discovery showed that Hinman’s speech was controversial within the SEC. Internal emails and memos revealed staff concerns over applying a “decentralization” test and questioned whether Hinman’s analysis had a sound legal basis. Despite this internal conflict, the SEC took no enforcement action against Ethereum, and the market moved forward with the assumption that ETH was in the clear. This perceived leniency has since been dubbed the “ETH free pass” by crypto observers—a term capturing what many see as selective enforcement. Ripple’s Legal Battle Ripple didn’t get the same treatment. In December 2020, the SEC sued Ripple Labs and two of its executives, claiming they sold XRP as an unregistered security. The lawsuit rocked the crypto world and sparked a broader debate about regulatory overreach. Ripple fought back in court, and in July 2023, Judge Analisa Torres ruled that XRP itself is not a security when traded on public exchanges. The decision was seen as a major victory for Ripple and the industry. A proposed settlement between Ripple and the SEC followed in late 2024 but was rejected by Judge Torres on procedural grounds. A revised settlement is expected by June 16, 2025. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Throughout the case, Ripple’s leadership questioned why Ethereum had been spared, despite similar token distribution models and early fundraising tactics. CEO Brad Garlinghouse and others pointed to the lack of regulatory clarity and the damage done by enforcement-first policies. Congress Demands Clarity Now, lawmakers want answers. Congress has formally requested that the SEC release all internal communications and documents related to its decision not to pursue enforcement against Ethereum. This includes any drafts or deliberations tied to Hinman’s 2018 speech, applications of the Howey Test, and any potential external influence on the agency’s posture. The inquiry signals rising dissatisfaction with the SEC’s inconsistent approach to crypto. With momentum building behind legislative reforms and stablecoin regulation in 2025, this push for transparency could be a turning point in how digital assets are governed in the U.S. As Xaif aptly put it: “2018: SEC says ETH isn’t a security. 2023: SEC dodges ETH questions. 2025: Time for answers.” The era of regulatory ambiguity may finally be coming to an end. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Congress Demands SEC Docs On Why XRP Targeted While Ethereum Cleared appeared first on Times Tabloid .

Source: TimesTabloid