Summary
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Deaton’s Transparency Demand: Pro-XRP attorney John Deaton is publicly urging the SEC to release the Inspector General’s report on former official William Hinman’s 2018 speech about Ethereum, calling for greater transparency from the agency.
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Concerns of Regulatory Bias: The demand stems from concerns that Hinman’s speech, which declared Ethereum was not a security, might have unduly influenced SEC policy and potentially favored Ethereum over other cryptocurrencies like XRP, raising questions about fair and unbiased regulation.
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Pressure for Accountability & Review: Deaton argues the report’s release is essential for public clarity, could expose potential conflicts of interest, and might compel the SEC to reassess its crypto regulatory approach if bias is confirmed.
Prominent attorney and XRP advocate, John Deaton, is publicly challenging the U.S. Securities and Exchange Commission (SEC) to demonstrate transparency by releasing a long-awaited report from the Inspector General (IG).
This report scrutinizes a 2018 speech by former SEC official William Hinman concerning Ethereum.
Deaton is specifically calling upon current SEC Commissioners Paul Atkins, Mark Uyeda, and Hester Peirce to advocate internally for the public disclosure of this document.
His request is gaining traction within the cryptocurrency community, which is increasingly questioning whether the SEC intends to address growing concerns regarding potential biases in its regulatory approach to digital assets.
Through social media platform X, Deaton articulated his demand for the SEC to make public the internal deliberations and communications that surrounded Hinman’s declaration, which subsequently triggered internal investigations.
He argues that the report’s release is crucial for providing investors and the broader crypto ecosystem with clarity.
The central question, according to Deaton, is whether the SEC unfairly favored Ethereum over other digital currencies, notably XRP, through Hinman’s pronouncements and subsequent regulatory actions.
Deaton’s Push for Hinman Report: Demand for SEC Transparency
The crux of the issue stems from Hinman’s 2018 statement asserting that Ethereum was not classified as a security.
This assertion is seen as having significantly shaped the SEC’s approach to categorizing cryptocurrencies, and critically, it placed Ethereum in a more favorable position compared to assets like XRP, which lacked similar public endorsements from the regulator.
Instead of establishing clear and consistent criteria for crypto classification, the SEC utilized Hinman’s statement as a foundation to initiate legal action against Ripple, the company behind XRP.
The lawsuit alleges that Ripple conducted illegal securities trading through XRP. This legal action ignited widespread criticism within the crypto community, with accusations that the SEC was exhibiting favoritism and imposing disproportionately strict regulations on digital assets beyond Ethereum.
Unveiling Potential Bias: Questions Surround Ethereum Speech Impact
Deaton’s persistent campaign for the IG report’s release is directly linked to the ongoing legal battle against XRP that followed Hinman’s address.
His sustained inquiries led to investigations uncovering Hinman’s connections to the Ethereum Enterprise Alliance—a factor suggesting a potential conflict of interest that could have influenced the SEC’s regulatory decisions.
Deaton contends that the SEC’s continued withholding of the report, despite repeated public appeals, raises fundamental questions about the agency’s probity and impartiality in its regulatory procedures.
He has publicly appealed to SEC officials Atkins, Uyeda, and Peirce, emphasizing their previous public stances in favor of greater transparency within the digital currency sector.
Deaton argues that if the IG report substantiates any link between Hinman’s statements and the SEC’s actions, including the lawsuit against XRP and broader decisions concerning digital assets, the agency will be compelled to reassess and potentially overhaul its entire regulatory framework.
Despite increasing pressure from various quarters, including investors, policymakers, and industry leaders, the SEC has not yet released the IG report. This ongoing delay only amplifies criticisms of the agency’s operations.
Furthermore, watchdog organizations dedicated to monitoring governmental bodies, businesses, and public institutions for ethical conduct and accountability have also identified potential inconsistencies arising from Hinman’s comments.
Empower Oversight, a government watchdog, pointed to a possible infringement of federal law “18 USC 208,” which prohibits government officials from engaging in matters where they possess a financial interest.
Also Read: Atkins Pledges Crypto Regulation Focus at SEC
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