Ripple’s Legal Battle Escalates: CLO Demands SEC’s Response to Hinman Speech Controversy

Ripple, the blockchain company currently facing a lawsuit by the Securities and Exchange Commission (SEC), has called for an investigation into the actions of former SEC official Bill Hinman.

In 2018, Hinman gave a speech in which he said that Ethereum, the underlying blockchain for the cryptocurrency XRP, was not a security. However, the SEC has since filed a lawsuit against Ripple, alleging that XRP is indeed a security.

Ripple’s Chief Legal Officer, Stuart Alderoty, has said that the release of public emails and drafts of Hinman’s speech has raised “serious concerns” about Hinman’s actions. Alderoty has also said that the SEC’s treatment of Hinman’s speech has been “inconsistent” and “confusing.”

Alderoty has called for an investigation into Hinman’s actions, including whether he was influenced by any outside parties and whether he properly disclosed his conflicts of interest. Alderoty has also called for the removal of Hinman’s speech from the SEC’s website.

The SEC has not yet responded to Ripple’s request for an investigation.

Impact on the Cryptocurrency Industry

Ripple’s call for an investigation into Hinman’s speech could have a significant impact on the cryptocurrency industry. The SEC’s lawsuit against Ripple has already cast a shadow over the industry, and Ripple’s call for an investigation could further add to the uncertainty.

If the SEC is found to have acted improperly in its treatment of Hinman’s speech, it could damage the credibility of the agency and make it more difficult for the SEC to regulate the cryptocurrency industry in the future.

Ripple CEO’s Criticism

Ripple CEO Brad Garlinghouse has also criticized the SEC’s handling of the cryptocurrency industry. In a recent interview, Garlinghouse said that the SEC’s lawsuit against Ripple is “an attack on innovation.”

Garlinghouse has also said that the SEC’s approach to regulating cryptocurrencies is “unfair” and “uneven-handed.” He has pointed out that the SEC has not taken action against other large cryptocurrency companies, such as Bitcoin and Ethereum.