Pro-XRP Lawyer Reacts as SEC Confirms Investigating William Hinman

The U.S. SEC says it is close to concluding an investigation relating to the financial conflict of interest by William Hinman.

In a startling development, the U.S. SEC’s Office of Inspector General (OIG) informed Empower Oversight that the division is almost through with an investigation relating to a financial conflict of interest by high-level officials of the agency concerning cryptocurrencies.

Hinman’s Controversies and Empower Oversight FOIA  

For context, Empower Oversight sent a referral to the OIG in May 2022, citing documents it received through a FOIA request regarding the Ethics Office’s failure to curtail Hinman’s conflict of interest on cryptocurrency matters.

A case in point was the controversial speech delivered by Hinman at the Yahoo Finance Summit on June 14, 2018. During his remark, Hinman declared Ethereum (ETH) as a non-security while the commission, through its enforcement actions, labeled other similar assets as non-securities.

Prior to Hinman’s controversial speech, Empower Oversight released records showing that he received millions of dollars from his former employer, Simpson Thacher, a member of Ethereum Enterprise Alliance (EEA) while working at the SEC.

The documents also showed that Hinman met with some Simpson Thacher employees despite participating in crucial SEC enforcement decisions.

Empower Oversight FOIA Requests

Notably, Empower Oversight has sought transparency concerning the SEC’s decisions on cryptocurrencies since August 2021. Consequently, it has filed multiple FOIA requests with the SEC seeking all crypto-related communications involving some top-level officials like Hinman and their former employers.

Although the SEC had produced some documents requested by Empower Oversight, the commission has been slow to release additional records.

Commenting on the development, Empower Oversight President Tristan Leavitt attributed the delay to the OIG’s ongoing investigation. He urged the SEC to do the right thing to “prevent similar conflicts of interest from undermining public faith in the SEC’s work in the future.”

Empower Oversight Threatens to Sue SEC Again 

However, should the SEC refuse to produce more records with respect to Empower Oversight’s May 15, 2023, FOIA request, it threatened to sue the commission on February 23, 2024.

It bears mentioning that Empower Oversight had twice filed FOIA enforcement lawsuits against the SEC. The first case was introduced in December 2021, prompting the commission to release certain records. In addition, Empower Oversight sued the SEC again on May 11, 2023, in the United States District Court for the District of Columbia.

Deaton Reacts

As expected, the latest update concerning Empower Oversight’s FOIA requests stirred reaction from top crypto enthusiasts.

Reacting, Attorney John Deaton, who represents thousands of XRP holders in the SEC v. Ripple lawsuit, emphasized the importance of adhering to ethical rules.

According to Deaton, the strength of America lies in establishing an equitable environment, allowing the best innovation and technologies to compete fairly. Furthermore, he asserted the need to challenge gross government overreach.

We must have our ethics’ rules followed, and when they’re not, they must be enforced. America is at its greatest when we have a level playing field and we allow the best technologies and innovations to compete fairly. And we must ALWAYS stand up against gross government… https://t.co/bs0IbYfSq6

— John E Deaton (@JohnEDeaton1) February 15, 2024

Notably, Deaton has been vocal in challenging overreach by the government. His determination to challenge this overreach prompted him to defend the rights of XRP holders in the ongoing Ripple lawsuit.

His involvement in the lawsuit contributed immensely to Ripple’s victory on programmatic sales of XRP, which was declared non-security.