- Bill Morgan accused the SEC of corruption, alleging that former official William Hinman showed favoritism towards Ethereum, resulting in a regulatory bias against Ripple’s XRP.
- CPAC has filed complaints against former SEC official William Hinman for unethical behavior.
- CPAC calls for investigation into Hinman’s actions and potential SEC regulatory bias.
Allegations of SEC Corruption: Unveiling the Bias Against Ripple’s XRP
XRP Lawyer Slams SEC In Ethereum Case
An XRP lawyer has alleged corruption within the Securities and Exchange Commission (SEC), suggesting that the regulator showed undue favoritism towards Ethereum at the expense of Ripple’s native token XRP. Bill Morgan, a pro-XRP attorney, has reiterated accusations of biased regulatory practices, pointing to former SEC official William Hinman’s actions as a focal point of the controversy.
CPAC’s Involvement And Potential Impact
CPAC’s Director of the Center for Regulatory Freedom, Andrew Langer, has taken a leading role in calling for an investigation into Hinman’s conduct. Langer’s complaints to the bar associations assert that Hinman’s connections to his former law firm, Simpson Thacher & Bartlett (STB).
Notably, this law firm was involved with the Enterprise Ethereum Alliance, raising significant ethical questions. The firm’s potential benefits from Ethereum’s regulatory status, influenced by Hinman’s speech, suggest a conflict of interest that CPAC argues needs thorough investigation.
In addition, Hinman’s pivotal 2018 speech effectively relieved Ethereum from the stringent regulatory scrutiny applicable to securities transactions. This move coincided with Simpson Thacher’s involvement in promoting Ethereum’s use in various business sectors.
CPAC’s complaint emphasizes that Hinman’s former firm stood to gain from Ethereum’s enhanced market position, a benefit arguably driven by Hinman’s regulatory guidance. Meanwhile, the controversy around Hinman’s actions has been compounded by the SEC’s prolonged and contentious discovery process in its lawsuit against Ripple Labs.
Conclusion
Besides, internal SEC emails revealed Hinman’s consultations with Ethereum co-founder Vitalik Buterin before his speech, despite having already decided that Ether would not be a security. This discovery has further fueled allegations of bias and corruption within the SEC.
While Hinman left the SEC in 2020 and returned to STB, his subsequent role as an advisory partner for Andreessen Horowitz’s cryptocurrency team has also raised eyebrows. This appointment, coupled with his previous actions, continues to cast a shadow over the impartiality and integrity of the SEC’s regulatory practices during his tenure.
