Unsealed SEC internal discussion documents have revealed that William Hinman, the former director of the SEC’s Division of Corporation Finance, may have contradicted himself over his statement that Ether isn’t a security. Here are the most important points to know about this revelation:
1. Hinman’s statement on Ether: In June 2018, Hinman gave a speech in which he stated that Ether, the cryptocurrency that powers the Ethereum blockchain, is not a security. This statement was seen as a significant development in the cryptocurrency industry, as it provided clarity on how the SEC views cryptocurrencies and their regulatory status.
2. Internal discussions suggest contradiction: However, internal discussion documents that were recently unsealed as part of a lawsuit against Ripple suggest that Hinman may have contradicted himself in his statement on Ether. The documents show that there were internal debates within the SEC about whether Ether should be classified as a security or not, and that Hinman’s statement may have been at odds with those debates.
3. Implications for the cryptocurrency industry: This revelation could have significant implications for the cryptocurrency industry, as it raises questions about the SEC’s regulatory approach to cryptocurrencies. If Hinman’s statement on Ether was not based on a clear and consistent regulatory framework, it could mean that other cryptocurrencies are also at risk of being classified as securities, which would subject them to more stringent regulatory requirements.
In summary, the unsealed SEC internal discussion documents suggest that William Hinman may have contradicted himself over his statement that Ether isn’t a security. This revelation could have significant implications for the cryptocurrency industry and raises questions about the SEC’s regulatory approach to cryptocurrencies.