Five years after Bill Hinman delivered a speech on cryptocurrencies, Stuart Alderoty, the Chief Legal Officer (CLO) at Ripple, has raised concerns and called for an investigation into the actions of the former Securities and Exchange Commission (SEC) official. This call comes in light of the SEC&#39;s lawsuit against Ripple and the subsequent release of public emails and drafts of Hinman&#39;s speech. The disclosed documents allegedly reveal that Hinman ignored multiple warnings about the lack of legal basis in his analysis, leading to confusion in the market.Hinman&#39;s Speech and SEC&#39;s Position:In his speech, Hinman stated that a token ceases to be a security once it achieves a certain level of decentralization. He introduced factors to consider when determining the &#34;sufficient decentralization&#34; of a token. Although Hinman claimed it was his personal view, the SEC promoted it as guidance, with then-SEC Chair Jay Clayton publicly endorsing it. Despite the SEC&#39;s changing stance on the speech&#39;s significance in litigation, it remains accessible on the agency&#39;s website.Neglected Suggestions and Reservations:Senior SEC officials claim that Hinman disregarded suggestions to align his newly-invented factors more closely with the Howey analysis and failed to address whether a digital asset meets the legal standards of a security. The SEC also expressed reservations about directly mentioning Ether in the speech, as it could hinder the agency&#39;s ability to adopt a different stance on ETH in the future.Ripple&#39;s Demands:Ripple&#39;s CLO, Alderoty, demands the immediate removal of Hinman&#39;s speech from the SEC&#39;s website and a thorough investigation into the factors influencing Hinman&#39;s actions. He questions why conflicts or appearances of conflicts were overlooked and why the SEC endorsed a speech that created &#34;greater confusion.&#34; Alderoty argues that Hinman&#39;s speech should never again be invoked as a basis for determining whether a token is a security, emphasizing the importance of faithful application of existing laws rather than the creation of new ones by unelected bureaucrats.Garlinghouse&#39;s Criticism and Allegations:Brad Garlinghouse, Ripple&#39;s CEO, has joined Alderoty in criticizing the SEC&#39;s handling of the cryptocurrency industry. Garlinghouse specifically points to the SEC&#39;s lawsuit against him and co-founder Chris Larsen, which accuses them of selling XRP as an unregistered security. Ripple vehemently denies these allegations, asserting that XRP is a digital currency akin to Bitcoin or Ethereum.Weaponization of Regulatory Uncertainty:Garlinghouse further argues that the lack of regulatory clarity in the industry has been exploited by the SEC, using enforcement actions to sow confusion and uncertainty. He accuses the SEC of engaging in politically motivated overreach and calls for greater transparency and accountability from regulators.As Ripple continues to battle the SEC&#39;s lawsuit, the company&#39;s CLO and CEO raise serious concerns about the actions and guidance provided by the regulatory agency. They call for an investigation into the former SEC official&#39;s speech, its promotion as guidance, and the alleged creation of confusion in the market. Ripple emphasizes the need for regulatory clarity and urges regulators to faithfully apply existing laws without overreaching their authority. The cryptocurrency industry awaits further developments in this ongoing dispute with the SEC.

Ripple Calls for Investigation into SEC Official's Speech on Cryptocurrencies

ItsBitcoinWorld

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