WASHINGTON — In a recent online broadcast, John Deaton, founder of Crypto Law, issued a public appeal to the Securities and Exchange Commission (SEC) demanding the release of a long-awaited report concerning a 2018 speech by former SEC official, William Hinman. The speech, which effectively cleared Ethereum of stringent regulatory scrutiny, has sparked debates over possible conflicts of interest at the SEC.
Deaton’s plea underscores a broader call for transparency within financial regulatory agencies amidst an evolving digital asset landscape. The concerns stem from a speech delivered by Hinman at the Yahoo Finance All Markets Summit where he suggested that Ethereum, unlike other cryptocurrencies, would not be classified as a security. This statement has since been a focal point of contention considering Hinman’s previous affiliations with a law firm that had associations with the Ethereum Foundation.
The independent watchdog group, Empower Oversight, prompted by these potential conflicts, requested an investigation into the matter. The Office of the Inspector General completed this investigation, forwarding its findings to SEC Chairman Gary Gensler. While the report is currently with the SEC, it hasn’t yet been released to the public.
Reacting to the delay in publication, Deaton, who is also representing 75,000 XRP holders in a legal case against Ripple, directly reached out to Gensler’s office. He respectfully requested the SEC chairman to make the findings public within 10 days. Deaton emphasized that the report’s contents carry significant public interest, particularly for those involved in or following the Ripple lawsuit.
Deaton didn’t just stop with a call to the SEC but also encouraged the public to demand transparency. He urged people to contact the SEC through calls or emails to press for the release of the Hinman report. This movement aims to underline the community’s right to transparency concerning decisions that affect the classification and regulation of cryptocurrencies like XRP.
Adding to the urgency is the impending resignation of Gensler, who announced his plan to step down as SEC Chairman on January 20, coinciding with the presidential inauguration. Paul Atkins is expected to succeed Gensler as the new SEC Chairman. The transition comes at a crucial time when the crypto community is keen on ensuring accountability in government actions, especially those related to financial oversight of the burgeoning cryptocurrency sector.
This situation presents a pivotal moment for the SEC, highlighting the challenges of regulating digital assets and managing potential conflicts of interest within its ranks. As the deadline approaches, all eyes will be on Gensler’s next move regarding the disclosure of the report and how it might influence the regulatory landscape for cryptocurrencies in the United States.
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