{"id":445616,"date":"2022-05-12T06:03:13","date_gmt":"2022-05-12T03:03:13","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/could-the-sec-case-against-ripple-falter-over-a-conflict-of-interest\/"},"modified":"2022-05-12T06:03:13","modified_gmt":"2022-05-12T03:03:13","slug":"could-the-sec-case-against-ripple-falter-over-a-conflict-of-interest","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/could-the-sec-case-against-ripple-falter-over-a-conflict-of-interest\/","title":{"rendered":"# Could the SEC case against Ripple falter over a conflict of interest?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3fa8af66b08\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3fa8af66b08\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/could-the-sec-case-against-ripple-falter-over-a-conflict-of-interest\/#%E2%80%9D_Could_the_SEC_case_against_Ripple_falter_over_a_conflict_of_interest_%E2%80%9C\" >&#8221; Could the SEC case against Ripple falter over a conflict of interest? &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Could_the_SEC_case_against_Ripple_falter_over_a_conflict_of_interest_%E2%80%9C\"><\/span>&#8221; Could the SEC case against Ripple falter over a conflict of interest? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvZDlmMWJhNDEtMjY1ZC00ODcxLThiZGMtZjY2ZmMyNWU2MzVlLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Newly discovered documents could pose a major roadblock for the Securities and Exchange Commission (SEC) in its case against Ripple if they prove a former commission official had a conflict of interest.<\/p>\n<p>The SEC has been embroiled in a legal battle against blockchain company Ripple (XRP) since 2020 in which the crypto company and senior executives Brad Garlinghouse and Christian Larsen were charged with selling XRP tokens as unregistered securities.<\/p>\n<p>In a May 10 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/empowr.us\/empower-oversight-requests-sec-oig-conduct-investigation-into-the-failure-of-the-secs-ethics-office-to-prevent-cryptocurrency-conflicts-of-interest-by-senior-staff\/\">announcement<\/a>, corruption watchdog Empower Oversight claimed that documents obtained under a Freedom Of Information request suggested former SEC Director of Corporate Finance William Hinman had a conflict of interest and should not have made a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/speech\/speech-hinman-061418\">speech<\/a> in 2018 in which he stated that Ether (ETH) and its transactions are not securities. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Empower Oversight Requests SEC-OIG Conduct Investigation into the Failure of the SEC\u2019s Ethics Office to Prevent Cryptocurrency Conflicts of Interest by Senior Staff<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/fMRPTUN0ov\">https:\/\/t.co\/fMRPTUN0ov<\/a><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/cryptotrading?src=hash&amp;ref_src=twsrc%5Etfw\">#cryptotrading<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#crypto<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24XRP&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$XRP<\/a><\/p>\n<p>\u2014 Empower Oversight (@EMPOWR_us) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/EMPOWR_us\/status\/1524057156479246336?ref_src=twsrc%5Etfw\">May 10, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nAccording to the non-profit watchdog, Hinman should have recused himself from speaking about Ethereum due to his undisclosed \u201cdirect financial interest\u201d with the Simpson Thacher &amp; Bartlett law firm that is a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/entethalliance.org\/eea-members\/#s\">member<\/a> of the Enterprise Ethereum Alliance (EEA). <\/p>\n<p>The EEA promotes the use of blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> on the Ethereum blockchain.<\/p>\n<p>Founder of legal <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> outlet Crypto Law lawyer John Deaton told his 198,000 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers on May 11 that Hinman\u2019s potential compliance failure could jeopardize the SEC\u2019s entire case against Ripple. If the conflict exists, Deaton said the case could be \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> set and match\u201d for Ripple. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/EMPOWR_us?ref_src=twsrc%5Etfw\">@EMPOWR_us<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JsnFostr?ref_src=twsrc%5Etfw\">@JsnFostr<\/a> retrieved the emails below. If Hinman didn\u2019t submit the speech to conflicts screening it is game set &amp; match. The Ethics Office is going to be pissed and want to throw him under the bus if we force this investigation through letters from Congress. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/8j9Nwb0OZn\">pic.twitter.com\/8j9Nwb0OZn<\/a><\/p>\n<p>\u2014 John E Deaton (@JohnEDeaton1) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JohnEDeaton1\/status\/1524388008870522887?ref_src=twsrc%5Etfw\">May 11, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Law360, a legal news outlet, Hinman <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.law360.com\/articles\/1491850\/sec-asked-to-probe-ex-official-s-crypto-statements\">worked<\/a> at Simpson Thacher before joining the SEC, then rejoined the firm in 2021. <\/p>\n<p>Empower Oversight said that Hinman was receiving $1.5 million in retirement benefits from the law firm annually while he worked at the SEC, and alleged that he \u201chad repeated contact with the law firm\u2019s personnel.\u201d The organization noted that the SEC\u2019s \u201cEthics Office explicitly told him not to have any contact with Simpson Thacher personnel.\u201d<\/p>\n<p>The organization requested the Office of the Inspector <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> of the SEC conduct a \u201ccomprehensive review of the SEC\u2019s ethics officials\u201d to determine whether Hinman had a conflict of interests. That review would include the following considerations:<\/p>\n<p>\u201c(1) Understand the degree to which the conflict involving this former official exacerbated the perception that the SEC\u2019s enforcement actions have selectively targeted some cryptocurrencies while giving others a free pass; <\/p>\n<p>(2) Explain to the public how the SEC\u2019s Ethics Office failed to effectively ensure compliance with its clear directives; and (3) Evaluate the SEC\u2019s policies and procedures to identify ways to more effectively monitor compliance with ethics guidance.\u201d<\/p>\n<p>(3) Evaluate the SEC\u2019s policies and procedures to identify ways to more effectively monitor compliance with ethics guidance.\u201d<\/p>\n<p>This latest development in the case is an unexpected twist on top of former SEC official Joseph Hall\u2019s February prediction that the commission will lose to Ripple based on the merits of the case.<\/p>\n<p>Many in the crypto industry have been watching this case closely because the outcome will likely have massive implications. If Ripple wins, it would force the SEC to back off from its aggressive stance towards crypto. If the commission wins, it would almost certainly open the field to a bevy of new litigation against crypto companies.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Chairmen from the SEC and CFTC talk crypto regulation at ISDA meeting<\/em><\/strong><\/p>\n<p>XRP is 19.2% down over the past 24 hours, trading at $0.41 according to CoinGecko <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/xrp\">data<\/a>.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/could-the-sec-case-against-ripple-falter-over-a-conflict-of-interest\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Could the SEC case against Ripple falter over a conflict of interest? &#8220; Newly discovered documents could pose a major roadblock for the Securities and Exchange Commission (SEC) in its case against Ripple if they prove a former commission official had a conflict of interest. The SEC has been embroiled in a legal battle&#8230;<\/p>\n","protected":false},"author":1,"featured_media":445617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvZDlmMWJhNDEtMjY1ZC00ODcxLThiZGMtZjY2ZmMyNWU2MzVlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75034,74898,70934],"class_list":["post-445616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-ripple","tag-sec","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=445616"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/445617"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=445616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=445616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=445616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}