SEC Under Fire: The Hinman Ethereum Speech and Its Aftermath
The post SEC Under Fire: The Hinman Ethereum Speech and Its Aftermath appeared first on Coinpedia Fintech News
The U.S. Securities and Exchange Commission (SEC) is currently in the final stages of an investigation concerning a potential financial conflict of interest involving William Hinman, a prominent figure within the agency, particularly in matters related to cryptocurrencies. This inquiry was initiated following a referral from Empower Oversight, an organization focused on transparency and accountability in government actions.
A Cover-Up Move or a Serious Investigation?
The investigation started with Hinman’s controversial speech at the Yahoo Finance Summit in 2018, where he commented on Ethereum (ETH) as a non-security asset. This statement raised eyebrows due to Hinman’s prior professional ties to Simpson Thacher, a legal firm associated with the Ethereum Enterprise Alliance (EEA), which Hinman had received significant financial compensation from during his tenure at the SEC.
According to FOIA papers, Hinman and SEC’s involvement in Ethereum-related matters may have been a conflict of interest. Empower Oversight referred the subject to the SEC’s OIG. The materials showed that Hinman had gotten large financial benefits from his former firm and had continued interactions with Simpson Thacher employees despite being involved in crucial SEC enforcement decisions.
In response to Empower Oversight’s concerns, the OIG investigated Hinman’s actions to determine if they violated SEC ethics or regulations in response to Empower Oversight’s concerns. Oversight is frustrated by delays in getting further FOIA materials as the probe nears its end, threatening legal action against the SEC if the sought documents are not provided by a deadline.
Hinman’s speech allegedly favored Ethereum, claim Ripple XRP critics.
Partners in the crypto community closely observe whether the SEC’s request for an internal investigation will lead to accountability or merely a cover-up. Attorney John Deaton, representing XRP holders in the SEC v. Ripple lawsuit, has weighed in on the situation, emphasizing the importance of upholding ethical standards and ensuring fair competition within the regulatory landscape.
Deaton’s efforts against government overreach and support for crypto investors’ rights show how the SEC’s actions impact the crypto community.
On a similar note, XRP advocate Bill Morgan has expressed concerns about the SEC’s integrity, echoing broader worries about potential conflicts of interest within the agency. His remark raises the question: Will William Hinman face consequences, or will the investigation be a whitewash? Hinman, a former senior SEC official, is under scrutiny for his involvement with Ethereum and XRP.
Will this controversy spark change in how cryptos are regulated? Only time will tell.
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