SEC Counsel Called Out on Hinman Documents Alleged Favoritism

In short: Ripple's Chief Legal Officer, Stuart Alderoty, has called on the United States Security and Exchange Commission (SEC) to comply with regulations and act impartially. Alderoty cited the SEC's alleged evasion tactics in the ongoing lawsuit against Ripple and the Hinman documents, which imply favoritism towards Ether. He called for an investigation into William Hinman, former Director of the SEC’s Corporation Finance, to understand what or who influenced him, why potential conflicts were ignored and why the SEC touted the speech despite the expected confusion it would cause. An ex-SEC director believes a ruling on the case is due soon.

Our quick analysis:
In a recent tweet, Stuart Alderoty, the Chief Legal Officer of Ripple, called for the United States Security and Exchange Commission (SEC) to act impartially, citing federal employees' legal obligation. This reaction follows the release of the Hinman documents, which suggest that former SEC Director William Hinman may have shown favoritism towards Ethereum.

The documents reveal that Hinman ignored warnings about his speech, which implied that Ethereum was not a security, while Bitcoin was. Some members of the crypto community believe that this speech favored Ethereum, suggesting that Hinman was not impartial in his actions.

Alderoty's tweet further calls for an investigation to understand who or what influenced Hinman and why conflicts or appearances of conflicts were ignored. Ripple CEO Brad Garlinghouse also confirmed that the company plans to investigate the matter.

According to ex-SEC Director Marc Fagel, a ruling on the ongoing case is expected within days. Despite that, he notes there is no basis to believe that the delay is due to the complex nature of the case. Ultimately, he concludes that the Hinman speech did not cause greater confusion, as Ripple is substantially different.

The SEC must adhere to rigid rules, and their perceived evasion tactics in the ongoing lawsuit against Ripple are unacceptable. The crypto community is calling for transparency in the matter, and Ripple's call for an investigation into the alleged favoritism towards Ethereum will undoubtedly help achieve that goal.

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In a recent tweet, Stuart Alderoty, the Chief Legal Officer of Ripple, called for the United States Security and Exchange Commission (SEC) to act impartially, citing federal employees' legal obligation. This reaction follows the release of the Hinman documents, which suggest that former SEC Director William Hinman may have shown favoritism towards Ethereum.

The documents reveal that Hinman ignored warnings about his speech, which implied that Ethereum was not a security, while Bitcoin was. Some members of the crypto community believe that this speech favored Ethereum, suggesting that Hinman was not impartial in his actions.

Alderoty's tweet further calls for an investigation to understand who or what influenced Hinman and why conflicts or appearances of conflicts were ignored. Ripple CEO Brad Garlinghouse also confirmed that the company plans to investigate the matter.

According to ex-SEC Director Marc Fagel, a ruling on the ongoing case is expected within days. Despite that, he notes there is no basis to believe that the delay is due to the complex nature of the case. Ultimately, he concludes that the Hinman speech did not cause greater confusion, as Ripple is substantially different.

The SEC must adhere to rigid rules, and their perceived evasion tactics in the ongoing lawsuit against Ripple are unacceptable. The crypto community is calling for transparency in the matter, and Ripple's call for an investigation into the alleged favoritism towards Ethereum will undoubtedly help achieve that goal.