Ripple’s chief legal officer, Stuart Alderoty, has called for an investigation into the motivations behind former SEC official William Hinman‘s controversial speech in 2018, during which Hinman asserted that Ether is not a security due to its decentralized nature. Alderoty’s demand comes after the public release of the Hinman documents, which reveal that his speech was given despite warnings from other SEC divisions.
According to the newly released documents, Hinman ignored warnings from other SEC officials, suggesting his speech contained made-up analysis with no basis in law. This led to confusion in the cryptocurrency industry regarding what constitutes a security. Alderoty argued that unelected bureaucrats should only apply the law rather than trying to create new ones and added that “Hinman’s speech should never again be invoked in any serious discussion about whether a token is or is not a security.”
Joining Alderoty in his criticism, Ripple CEO Brad Garlinghouse also expressed his concerns about Hinman’s speech on Twitter. He argued that moving forward with the speech despite so much pushback was “unconscionable.”
Pro-XRP lawyer and CryptoLaw founder John Deaton shared his thoughts with Cointelegraph, stating that he believes an investigation is warranted as well. Deaton specifically pointed out that Hinman’s reference to his speech as the “Ether Speech” raised questions about his motivations.
Some speculate that Hinman’s alleged ties to the Enterprise Ethereum Alliance, an organization advocating for the use of Ethereum blockchain technology, may have influenced his speech. Before and after working with the SEC, Hinman was employed by the law firm Simpson Thacher & Bartlett LLC, which is a member of the Ethereum Enterprise Alliance.
As the debate continues, the need for a clear and unified understanding of the criteria for determining whether a token is a security becomes increasingly essential. A thorough investigation into the motivations behind Hinman’s speech could shed light on the subject and ultimately benefit the entire cryptocurrency industry.
Source: Cointelegraph
