The legal dispute between Ripple and the Securities and Exchange Commission (SEC) has taken an intriguing turn. Prominent lawyers have raised serious allegations against former SEC Director William Hinman, suggesting he was paid to undermine XRP in favor of Ethereum (ETH).
The controversy erupted after the release of Hinman’s emails and drafts of his June 2018 speech. During a recent live CryptoLaw podcast, pro-XRP attorney John Deaton expressed his frustration with the content and purpose of the disclosed documents. Joining the discussion, Jeremy Hogan, a lawyer and cryptocurrency expert, supported Deaton’s concerns and claimed that Hinman received payment for delivering a speech that declared Ethereum as non-security.
Hogan’s assertions are primarily based on email exchanges between Hinman and his colleagues. These correspondences allegedly reveal that Hinman had already labeled his initial email as “the Ether speech” before he even started crafting it. Hogan argues that this choice of title suggests that Hinman’s objective from the outset was to assert that ETH should not be considered a security.
Hinman’s speech, delivered in 2018, was considered a groundbreaking moment within the cryptocurrency industry. It was widely perceived as the SEC’s official declaration that Ethereum did not fall under the category of securities. This announcement brought much-needed clarity to the regulation of cryptocurrencies, marking a significant victory for Ethereum and the entire digital asset ecosystem.
However, Hogan suggests that the speech served a dual purpose. Not only did it grant Ethereum a free pass, but it also aimed to undermine XRP, which was Ethereum’s biggest competitor at the time. Hogan’s claims are linked to Ripple’s ongoing legal battle with the SEC, where Ripple argues that XRP should not be classified as a security and subjected to regulation.
These allegations by Hogan are expected to fuel speculation regarding the relationship between the SEC and the cryptocurrency industry. They raise questions about the potential influence of external factors on the SEC’s decision-making process. However, it is crucial to note that Hogan’s claims are speculative and lack concrete evidence.
Currently, XRP is valued at $0.4731, experiencing a minor recovery of 0.6% within the past day following a dip to $0.4564 on Wednesday. Despite this recent drop, enthusiasts of XRP remain optimistic, eagerly anticipating a positive outcome that could propel the cryptocurrency to a new yearly high, surpassing the $0.5833 mark achieved in May. This optimistic outlook could favorably position XRP, currently the sixth-largest cryptocurrency, to reach the significant milestone of $1.
