- XRP’s investigation began in 2018 when it ranked 3rd in market cap, while Ethereum faced less SEC scrutiny.
- CPAC filed complaints citing Hinman’s potential conflicts due to his ties with Ethereum’s Enterprise Ethereum Alliance.
- Internal SEC emails suggest Ethereum benefited from regulatory clarity, contrasting with XRP’s classification as a security.
Bill Morgan, a prominent pro-XRP lawyer, has reiterated claims of biassed regulatory practices by the Securities and Exchange Commission (SEC), accusing them of favouring Ethereum over XRP. His comments, shared on social media, reflect broader allegations involving former SEC official William Hinman.
Morgan questioned the SEC’s activities, noting that Ripple’s investigation started in April 2018, when XRP ranked the third biggest cryptocurrency by market capitalization after Ethereum. He also argued that XRP was caught in unjustifiably high levels of regulatory attention from the SEC.
CPAC Files Formal Complaints
The CPAC Foundation’s Center for Regulatory Freedom has submitted formal complaints to the New York and California Bar Associations. These complaints allege unethical behaviour and conflicts of interest during Hinman’s tenure at the SEC.
Andrew Langer, Director of the CPAC Foundation’s Center for Regulatory Freedom, stated that Hinman’s actions raise serious ethical questions. The complaints emphasise the potential conflict of interest, noting that Hinman’s former firm, Simpson Thacher & Bartlett, was involved with the Enterprise Ethereum Alliance, potentially benefiting from Ethereum’s regulatory status.
The CPAC complaint draws on internal SEC emails and external communications uncovered during the discovery process in the ongoing SEC lawsuit against Ripple Labs. These documents include dialogues with Ethereum co-founder Vitalik Buterin before Hinman’s speech.
Critics argue that these communications suggest Ethereum received preferential treatment compared to XRP. Morgan’s remarks and CPAC’s actions underscore the intensifying scrutiny of Hinman’s regulatory decisions.
The crux lies in Hinman’s speech in 2018 when he stressed that Ethereum cannot be considered a security. At the time of reporting, XRP traded at $0.52907, reflecting ongoing market reactions to these developments.
