Watchdog group Empower Oversight Whistleblowers & Research (EMPOWR) has decided to sue the US SEC. The US regulator finds itself embroiled in a conflict of interest case related to crypto regulation. It could be that he lacked objectivity in deciding to consider cryptos as securities. Here is what it is.
Former SEC officials would have been corrupt!
EMPOWR has filed a lawsuit against the US SEC, which remains on alert. The case involves a potential conflict of interest by former SEC officials regarding the crypto industry. The oversight body would like access to documents relating to this conflict of interest. She specifically requested access to correspondence between William Hinman, Marc Berger and Jay Clayton and their current employers.
Jay Clayton happens to be the former chairman of the SEC. Marc Berger is the former director of the law enforcement division. As for William Hinman, he is the former director of finance. That said, through the legal action, the EMPOWR wants to force the American regulator to provide it with the documents it is requesting. It calls on the regulatory agency to comply with the Freedom of Information Act.
In its complaint, the EMPOWR To eexplained : “Requested documents will reveal whether former SEC officials had a conflict of interest when they said certain cryptos were securities and therefore subject to SEC regulation“. It appears that the law firm Simpson Thacher & Bartlett LLC took in Berger and Hinman after they left the SEC. Clayton has joined crypto hedge fund One River Asset Management.
According to EMPOWR, “these events raise serious questions about potential conflicts of interest behind government regulation of the emerging crypto market“. The watchdog alleges Hinman received millions of dollars from Simpson Thacher during his tenure at the SEC.
When William Hinman was at the SEC, he said in a speech that ether (ETH) is a commodity. Then the value of the crypto increased significantly. Additionally, several documents related to this speech were cited during the legal battle between the SEC and Ripple. Speaking of which, Ripple executives believe that the crypto company will win its lawsuit against the SEC.
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