The recent release of the documents from Hinman, a former SEC executive, came as a surprise to the crypto community. They were supposed to provide the elements to settle the debate around the movable nature or not of cryptos. Instead, the documents in question have instead created more confusion. The situation was such that Brad Garlinghouse, the boss of Ripple, had called for investigations into William Hinman.
According to Ripple CEO reveals, Hinman received funds from interested third parties
Following the publication of the Hinman documents, Brad Garlinghouse, the CEO of Ripple had called for the opening of an investigation. The investigations were to target this former executive of the SEC. In 2018, the latter delivered a crucial speech on the legal status of cryptocurrencies.
It is now clearly established that this speech was conceived and delivered in a nebulous and ambiguous context. What we know less so far is the reason behind the doubts that have marred the preparation of this famous speech. In this regard, Brad Garlinghouse offers an intriguing explanation.
Ripple’s CEO puts forward the idea of collusion in this case. According to him, William Hinman would have benefited from financial contributions from parties with a vested interest in the outcome of this speech. Garlinghouse claims the former SEC official received several million dollars from his law firm.
This firm being in contact with individuals having a direct interest in the speech, there would therefore have been a conflict of interest. A conflict of interest that would explain the confusion maintained by these famous documents about the nature of cryptos.
“While he was a public servant, Hinman received millions of dollars in payments from his law firm, which was part of an alliance with others with a vested interest in this speech”the official said.
According to the latter, this would explain, at least in part, the position of Hinman who seemed to voluntarily ignore the law. This attitude would be at the source of the regulatory vagueness concerning cryptos, vagueness of which Brad Garlinghouse believes that William Hinman would have been perfectly aware.
Unsubstantiated allegations?
It must be said that the allegations of the head of Ripple do not seem to be based on any verifiable source. In any case, the latter does not mention the basis of his accusations. Their credibility is therefore difficult to establish in the current state of affairs. In the meantime, the crypto community is now looking with trepidation at the delivery of the court ruling in the case between Ripple and the SEC.
As the legal saga continues, Brad Garlinghouse’s allegations add a new layer of complexity to the story. If the collusion and conflict of interest charges are proven, it could shed a dark new light on the SEC’s role in cryptocurrency regulation.
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