- Bill Morgan accuses the SEC of favoritism towards Ethereum over XRP, heightening regulatory dispute concerns.
- CPAC submits formal complaints against William Hinman for potential conflicts of interest during his SEC tenure.
Bill Morgan, an attorney known for his support of XRP, has recently criticized the Securities and Exchange Commission (SEC) for allegedly favoring Ethereum over XRP. This controversy, often referred to as “ETH Gate” involves claims that the SEC’s regulatory actions have been biased.
These claims have now led to formal complaints initiated by the Conservative Political Action Conference (CPAC).
But it is all just a grand conspiracy of the XRP community 😂.
It is good summary and that is without even taking into account that the SEC started investigating Ripple, at a time when XRP was number 3 in market cap behind Ethereum, in April 2018 while the draft of the Hinman… https://t.co/D4j5j6vG1p
— bill morgan (@Belisarius2020) May 29, 2024
Morgan articulated his concerns, suggesting that the SEC’s investigation into Ripple began under suspicious circumstances. He noted that this investigation started in April 2018 while internal discussions about a speech by former SEC official William Hinman were ongoing. Morgan argues that this overlap points to potential regulatory misconduct.
The focus of the complaints by CPAC centers on William Hinman, who, during his tenure at the SEC, made decisive comments in a 2018 speech indicating that Ethereum should not be classified as a security.
This distinction has significant implications, as it relieves Ethereum of the heavier regulatory scrutiny faced by securities.
Last week, Director of the CPAC Foundation Center for Regulatory Freedom Andrew Langer submitted complaints of unethical professional behavior to the New York and California Bar Associations about former Securities and Exchange Commission official William Hinman.
Evidence… pic.twitter.com/NUop4tJO8h
— CPAC (@CPAC) May 28, 2024
CPAC, through its Center for Regulatory Freedom, has taken formal steps by filing complaints against Hinman with the Bar Associations of New York and California. These complaints allege that Hinman’s actions while at the SEC were ethically questionable due to his prior associations with the law firm Simpson Thacher & Bartlett (STB) and his subsequent SEC role where he could influence Ethereum’s regulatory treatment.
Hinman’s speech in June 2018 coincided with STB’s involvement in the Enterprise Ethereum Alliance, which advocates for Ethereum’s use in business applications.
Andrew Langer, the director of CPAC’s regulatory freedom initiative, has called for an in-depth investigation into Hinman’s professional conduct, citing potential conflicts of interest that may have affected his decisions at the SEC.
The broader implications of these allegations are important, suggesting that Ethereum received a favorable regulatory position that could have been influenced by Hinman’s connections to entities benefiting from Ethereum’s growth. This situation highlights the complexities and potential conflicts of interest within cryptocurrency regulation.
As the SEC continues its legal actions against Ripple, labeling XRP as a security in December 2020, these developments underscore ongoing disparities in how different cryptocurrencies are regulated.
The case against Ripple contrasts starkly with the regulatory path cleared for Ethereum, amplifying calls for a clearer and more equitable regulatory framework in the cryptocurrency sector.
