Stuart Alderoty, the general counsel of Ripple, has joined a group of high-profile individuals in calling for an investigation into a former Securities and Exchange Commission (SEC) official. Here are the most important points to know about this situation:
1. The former SEC official in question is William Hinman, who served as the director of the SEC’s Division of Corporation Finance from 2017 to 2020. During his tenure, Hinman made a speech in which he stated that Ethereum was not a security, which had significant implications for the cryptocurrency industry.
2. The group of individuals calling for an investigation into Hinman includes former SEC commissioner Robert Jackson, former CFTC chairman Gary Gensler, and former SEC enforcement director Joseph Grundfest. They argue that Hinman’s speech created a conflict of interest, as he later joined the law firm Simpson Thacher & Bartlett LLP, which represented Ethereum’s co-founders.
3. Ripple is also involved in this situation because it is currently facing a lawsuit from the SEC over whether its XRP cryptocurrency is a security. Ripple has argued that Hinman’s speech created a double standard, as it gave Ethereum a pass while targeting XRP.
In summary, Stuart Alderoty and other high-profile individuals are calling for an investigation into William Hinman’s actions as an SEC official, specifically regarding his speech on Ethereum’s status as a security. This situation has implications for the cryptocurrency industry and Ripple’s ongoing legal battle with the SEC.