Ripple’s Chief Legal Officer Calls for Investigation into SEC Official’s Controversial Speech

5:05 am
July 22, 2023
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Stuart Alderoty, the Chief Legal Officer of Ripple, has joined a growing chorus of voices demanding an investigation into the intentions of former SEC official, William Hinman, regarding his speech in 2018.

Alderoty took to Twitter to call for a probe after the release of the Hinman documents on June 13. These documents reveal that Hinman went ahead with his speech despite warnings from other divisions of the SEC.

In his speech, Hinman controversially stated that Ether (ETH) should not be considered a security because it was “sufficiently decentralized.” However, he did not provide clear criteria for determining decentralization.

Alderoty argues that the recently disclosed documents demonstrate that Hinman ignored the advice of other SEC employees who believed that his speech was unfounded and lacked legal basis. As a result, the speech caused confusion within the cryptocurrency industry about what constitutes a security.

Alderoty asserts that unelected officials should not be making new laws and states that “Hinman’s speech should never again be referred to in any serious discussion about whether a token is a security or not.”

Ripple CEO Brad Garlinghouse also joined Alderoty in his criticism, calling Hinman’s decision to proceed with the speech despite significant pushback “unconscionable.”

Pro-XRP attorney and creator of CryptoLaw, John Deaton, supports the call for an investigation, citing concerns about the motivation behind Hinman’s “Ether Speech.” Deaton and Alderoty also highlight Hinman’s associations with the Enterprise Ethereum Alliance, a group that promotes the use of Ethereum blockchain technology.

It is worth noting that Hinman had previous connections to Simpson Thacher & Bartlett LLC, a law firm that was involved with the Ethereum Enterprise Alliance before and after his tenure at the SEC.

Summary:

Stuart Alderoty, Ripple’s Chief Legal Officer, has demanded an investigation into the motives behind William Hinman’s 2018 speech. The speech, in which Hinman claimed that Ether is not a security due to its decentralization, has caused confusion within the cryptocurrency industry. Alderoty believes that Hinman disregarded advice from other SEC employees, and therefore, his speech should not be used as a reference in determining whether a token is a security or not. Ripple CEO Brad Garlinghouse also criticized the decision to proceed with the speech. Pro-XRP attorney John Deaton supports the call for an investigation and raises concerns about Hinman’s associations with the Enterprise Ethereum Alliance.

FAQs:

Why is Stuart Alderoty calling for an investigation?

Stuart Alderoty, Ripple’s Chief Legal Officer, is calling for an investigation into William Hinman’s 2018 speech because he believes that Hinman ignored advice from other SEC employees and made statements without a legal basis. Alderoty argues that Hinman’s speech has caused confusion within the cryptocurrency industry and should not be referred to in discussions about security tokens.

What did William Hinman claim in his speech?

In his 2018 speech, William Hinman claimed that Ether (ETH) should not be considered a security because it was “sufficiently decentralized.” However, he did not provide clear criteria for determining decentralization.

Who else supports the call for an investigation?

Ripple CEO Brad Garlinghouse and pro-XRP attorney John Deaton also support the call for an investigation into William Hinman’s speech. They both criticize Hinman’s decision to proceed with the speech despite warnings and raise concerns about his associations with the Enterprise Ethereum Alliance.

What is the Enterprise Ethereum Alliance?

The Enterprise Ethereum Alliance is a group that promotes the use of Ethereum blockchain technology. It is mentioned in relation to William Hinman’s speech because of his apparent connections to the organization.


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