Stuart Alderoty, Chief Legal Officer of Ripple, has joined other influential figures in the crypto industry, calling for a comprehensive investigation into the actions of former Securities and Exchange Commission (SEC) official William Hinman.
Identifying Influences and Ignored Conflicts
In a series of tweets, Alderoty emphasized the importance of understanding the motivations behind Hinman’s statements and why potential conflicts of interest were either ignored or not given due consideration.
By examining these factors, the investigation seeks to uncover any improprieties and shed light on whether external influences played a role in shaping the speech’s content.
Ripple Fought for Unveiling the Hinman Documents
The recent release of the Hinman documents has provided crucial insights into the circumstances surrounding William Hinman’s speech on crypto regulation.
Notably, these documents revealed that other divisions within the SEC had raised concerns and issued warnings about the implications and potential ramifications of Hinman’s statements.
Therefore, the disclosure of this information has prompted Alderoty and others to call for an investigation into whether these warnings were properly addressed or ignored, and whether external influences played a role in shaping the speech’s content.
Promotion by the SEC and Expected Confusion
In addition, Alderoty’s tweets also questioned the SEC’s choice to extensively promote Hinman’s lecture despite the possibility of “greater confusion.” This raises concerns about the agency’s responsibility to provide clear and consistent regulatory guidance.
Alderoty’s investigation request seeks to determine why the SEC chose to spotlight a speech that could potentially lead to additional ambiguity and misunderstanding in the crypto market.
Furthermore, Alderoty stressed the necessity of regulatory agencies following their mandate of enforcing current laws rather than attempting to enact new ones. He further contended that Hinman’s statement should no longer be used to determine whether a token is considered a security.
Ripple CLO Supported by Industry Giants
Remarkably, Brad Garlinghouse, CEO of Ripple, has expressed his agreement with Stuart Alderoty’s criticism of the SEC and its decision to proceed with Hinman’s speech, despite facing significant pushback.
In addition, John Deaton who previously predicted a less than 3% outright win for the SEC has joined the chorus of voices calling for an investigation into the motivations behind Hinman’s speech. Deaton agrees with Alderoty’s demand for an investigation, emphasizing the significance of Hinman’s reference to the speech as the “Ether Speech.”