Empower Oversight has made public emails detailing improper conduct by SEC’s concerning Ripple lawsuit
Empower Oversight has emailed the Securities and Exchange Commission (SEC) publicly detailing the improper conduct of agency officials in connection with the Ripple lawsuit.
New emails prove SEC’s conflict of interest in crypto regulation in the Ripple lawsuit
The organization said that the emails indicated that former SEC official William Hinman had been warned of a conflict of interest with Simpson Thacher’s former firm.
Empower Oversight has filed to release the emails, saying that it can demonstrate that the SEC is enforcing selective laws against the crypto sector. The organization argues that it is likely that the SEC is promoting some cryptocurrencies more than others.
Hinman is said to continue to work with the New York-based law firm despite the concerns. Hinman met other law firm partners Josh Bonnie after the warning and fellow Ethereum co-founders and investors among the famous engagements.
The meeting came right before Hinman’s 2018 speech when he stated Ether was not a security. The speech was huge for the crypto space as the first 60 million Ether was sold to raise funds for the Ethereum Foundation.
“The latest documents provided by the SEC raise more questions than they answer. We will continue to report to the SEC for more meaningful and timely transparency on this matter,” said Jason Foster, Founder, and President of Empower Oversight.
At some point, SEC Ethics Adviser Shira Minton warned Hinman not to participate in a group meeting with law firm members due to financial conflicts.
The nearly 200-page emails were released after Empower Oversight filed a FOIA request in August 2021. The SEC ignored the request, and the organization filed a lawsuit to force the SEC to comply with FOIA requirements.
SEC lawyers have opposed the directive saying the emails contain employee opinions and are protected from detection.
Notable questions have arisen if Hinman fully discloses Simpson Thacher’s role in Ethereum to SEC ethics officials. It is unclear whether the law firm will approve the meeting with full disclosure.
Presiding Judge Sarah Netburn is expected to rule on the SEC’s request to review the production of internal documents by plaintiffs.
However, with Empowerment Oversight gaining access to the SEC emails, legal experts have argued that the content could further damage the agency’s prospects of winning a lawsuit against Ripple.
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