Regulation
ETH Gate scandal: XRP lawyer accuses SEC of favoring Ethereum in regulatory crackdown
This time, pro-XRP lawyer Bill Morgan has revived corruption accusations against the United States Securities and Exchange Commission. This time, he sets his sights on a controversial figure, William Hinman, and an alleged scandal with multi-million dollar implications: “ETH Gate”.
Could the SEC be playing favorites in the crypto market? Read on to unpack the accusations and see how they could impact the future of XRP.
Untangling the Web
Bill Morgan called attention to the fact that the SEC launched an investigation into Ripple just as XRP was climbing the crypto ladder, coinciding with Hinman’s vocal support of Ethereum.
The Conservative Political Action Conference (CPAC) raised concerns about Hinman’s conduct, filing formal complaints with the New York and California bar associations. CPAC’s Andrew Langer leads the charge, highlighting Hinman’s potential ethics violations and conflicts of interest, including his ties to the law firm Simpson Thacher & Bartlett, which represented the Enterprise Ethereum Alliance.
The Hinman twist
At a pivotal moment in June 2018, Hinman’s speech seemingly eased regulatory scrutiny on Ethereum by suggesting it should not be classified as a security. Internal SEC communications revealed Hinman’s consultation with Ethereum co-founder Vitalik Buterin ahead of his speech, fueling allegations of regulatory favoritism.
Market reaction and implications
Observers are noting a ripple effect in the crypto sphere following these revelations, with Bitcoin and Ethereum experiencing notable fluctuations. The ongoing controversy is sparking debates about regulatory fairness and transparency.
Beyond the immediate fray, concerns about favoritism toward Ethereum and investigations into Hinman’s actions underscore broader concerns about regulatory fairness and ethical standards within the SEC. The results of these investigations have important implications for the future of cryptocurrency regulation in the United States.
Stay tuned for further updates on this developing story!