Hinman continued to meet with Simson Thacher while at the SEC despite warnings from the SEC Ethics Division.
If the IG finds the SEC acted unethically, it could be another victory for the US digital asset space. The IG’s findings may incentivize US lawmakers to rein in the SEC and its regulation-through-enforcement stance against digital assets.
The Office of Inspector General could release the results of its investigation at any time.
On Monday, July 9, Amicus Curiae attorney and US Senate candidate for Massachusetts John E. Deaton, raised concerns about SEC practices.
John E Deaton Plans for US Regulators Highlight Conflicts Issue
John E. Deaton talked about regulatory capture, saying,
“I will offer a bill that imposes a 3-5 year statutory bar, preventing regulators (including lawyers) from working in the industry they were just in charge of regulating. […]. You won’t get to leave the SEC and immediately work for a hedge fund. I plan to weld the revolving door existing at our federal agencies permanently shut.”
The reference to members of the SEC leaving for hedge funds resonated.
In March 2024, Empower Oversight sent a FOIA request for records regarding possible ethical violations. The letter targeted William Hinman and former SEC Chair Jay Clayton. Empower Oversight claimed that Jay Clayton publicly said BTC was not a security and supported Hinman’s speech about ETH.
After leaving the SEC, the former SEC Chair allegedly joined crypto hedge fund One River Asset Management. One River Asset Management focused on BTC and ETH but not XRP.
Exposing crypto conflicts of interest within the SEC could end its plans to appeal unfavorable court rulings. Currently, SEC intentions to appeal the Programmatic Sales of XRP ruling remain intact, another XRP headwind.
In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. XRP could face selling pressure if the SEC files an appeal after the Ripple verdict.
Investors should remain alert with the court verdict pending. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market.
