In a social media post, Bill Morgan, a leading pro-XRP attorney, reiterated allegations of biased regulatory practices by the Securities and Exchange Commission (SEC), accusing it of showing unjustified favoritism toward Ethereum at the expense of XRP. This assertion is consistent with a broader accusation involving former SEC official William Hinman, which has now culminated in formal complaints by the Conservative Political Action Conference (CPAC).
Morgan's fiery comment appeared On In April 2018, while dozens of SEC employees and lawyers were working on a draft of Hinman's letter, “XRP has the third largest market capitalization behind Ethereum.”
XRP Army gets support from CPAC
His statement comes after intensified legal and ethics scrutiny surrounding former Securities and Exchange Commission (SEC) official William Hinman, with the Conservative Political Action Conference (CPAC) leading the way. Through its Center for Regulatory Freedom, CPAC filed formal complaints with the New York and California bar associations, alleging unethical conduct and potential conflicts of interest during Hinman's tenure at the SEC.
These claims stem from Hinman's pivotal 2018 speech in which he clarified the regulatory status of Ethereum (ETH), suggesting that it should not be classified as a security — a decision that had far-reaching implications for the cryptocurrency landscape.
Last week, Andrew Langer, director of CPAC's Center for Regulatory Freedom, filed unethical conduct complaints with the New York and California bar associations regarding former Securities and Exchange Commission official William Hinman.
certificate… pic.twitter.com/NUop4tJO8h
– CPAC (@CPAC) May 28, 2024
“Mr. Hinman's affiliations and actions while serving in a high-level position at the SEC raise serious ethical questions that require a thorough investigation by the relevant bar associations.
William Hinman's career path and connections form the crux of the controversy. After leaving his position as a partner at Simpson Thacher & Bartlett (STB) — a firm known for its financial services and involvement in the blockchain industry — Hinman was appointed director of the SEC's Division of Corporate Finance in May 2017.
Notably, in June 2018, Hinman gave a speech that effectively distinguished between Ethereum and securities, relieving it from the strict regulatory scrutiny applied to securities transactions.
This speech coincided with Simpson Thacher's participation in the Enterprise Ethereum Alliance (EEA), an organization focused on promoting the use of Ethereum across various business sectors. The CPAC complaint underscores the potential conflict of interest, highlighting that Hinman's former company would have benefited from Ethereum's enhanced market position, which was arguably affected by Hinman's regulatory guidance.
CPAC's complaint relies heavily on a series of internal SEC emails and external communications, which include conversations with Ethereum co-founder Vitalik Buterin prior to Hinman's 2018 letter. These documents were disclosed during the extensive discovery process in the lawsuit. The SEC's ongoing filing against Ripple Labs. Ripple, whose XRP token was classified as a security by the SEC in a lawsuit in late 2020, has arguably faced tougher regulatory treatment than Ethereum, a point of contention highlighted by critics like pro-XRP lawyer Bill Morgan.
At press time, XRP was trading at $0.52907.
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