- Newly uncovered documents reveal SEC’s apparent bias in crypto treatment.
- Former SEC Director William Hinman favored Ethereum’s Vitalik Buterin and Joseph Lubin.
- Lubin’s company, Consensys, played a significant role in shaping Hinman’s speech.
Newly uncovered documents have brought to light intriguing insights into the operations of the Securities and Exchange Commission (SEC) and its decision-making process in the realm of cryptocurrencies. A crypto enthusiast known as Digital Asset Investor delved into the documents and discovered an apparent bias in the treatment of certain crypto entities.
The documents reveal that while at his chair, then-SEC Director of Corporation Finance William Hinman seemed to show favoritism towards certain individuals in the crypto space. Specifically, he appeared to be accommodating Joseph Lubin and Vitalik Buterin, the prominent figures behind Ethereum, while simultaneously giving Brad Garlinghouse, CEO of Ripple, a hard time. The enigmatic role of Jay Clayton, who was the SEC Chairman at the time, is also noteworthy in this scenario.
Hinman’s speech in 2018 that Ether was not a security raised eyebrows, and now, with the newly obtained documents, questions arise about the possible reasons behind his stance. The crypto enthusiast queried about Hinman doing “backflips” to support Lubin and Buterin while giving hurdles to Garlinghouse.
Furthermore, these findings shed light on Lubin’s influential role in shaping the 2018 ‘Ether speech’ by Hinman. Lubin’s company, Consensys, played a significant part in driving Hinman’s thoughts and objectives during the creation of the controversial speech.
Of particular concern are the potential conflicts of interest that seem to have surrounded Hinman’s actions. The fact that he received substantial compensation from his former employer, Simpson Thacher, a firm that promoted Ether on the Ethereum network, raises questions about impartiality in his decision-making.
After relentless pursuit through Freedom of Information Act (FOIA) requests and legal battles, watchdog firm Empower Oversight has obtained 324 pages of additional documents from the SEC. Empower Oversight, which has been at the forefront of seeking transparency from the SEC, has filed multiple FOIA requests and a lawsuit to obtain these documents.
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