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Ripple Calls for Investigation into SEC’s Hinman Speech: Confusion and Controversy Explored

The Call for an Investigation

In a surprising twist in the crypto saga, Ripple’s chief legal officer Stuart Alderoty has moved swiftly to call for an investigation. This isn’t the kind of investigation that involves magnifying glasses and trench coats, but rather an inquiry into what motivated former SEC official William Hinman to deliver his infamous 2018 speech. Alderoty took to Twitter on June 13 to voice his concerns following the release of documents related to Hinman’s assertions at that time.

What Did Hinman Say?

During his speech, Hinman made headlines when he declared Ether (ETH) was not a security because it had become “sufficiently decentralized.” Sounds slick, doesn’t it? But the aftershocks of that declaration have rippled through the cryptocurrency market like a bad taco. According to Alderoty, Hinman ignored several warnings from other SEC divisions that cautioned his speech could cause confusion within the market.

The Warnings Ignored

Alderoty stated, “An investigation must be conducted to understand what or who influenced Hinman.” Who doesn’t love a good conspiracy theory? He pointed out that the insights from the newly released documents indicated that Hinman’s analysis was plucked from thin air, and lacked a solid grounding in legal principles. Talk about a risky move for the SEC!

The Ripple Effect

We’re not just talking about legal jargon here. Ripple’s CEO, Brad Garlinghouse, jumped into the fray, branding the decision to go ahead with Hinman’s speech as “unconscionable.” If throwing the crypto industry into chaos were an Olympic sport, this would definitely get a gold medal.

Echoes of Dissent

Brad expressed his disbelief: “It’s absolutely unconscionable that a regulator – when presented with so much pushback… decided to move forward anyway.” It’s like showing up to a party after being told there’s a skunk nearby. Yet these regulators seemed undeterred, moving along blissfully, leaving the industry and its players to navigate through a haze of confusion.

Examining Hinman’s Ties

While Dodgeball might be a game of dodging balls, this feels more like dodging accountability. Pro-XRP lawyer John Deaton claims that Hinman’s prior connections with the Enterprise Ethereum Alliance, a group promoting Ethereum’s use, should be a red flag. It raises questions about bias and whether his decisions were influenced more by connections rather than facts.

Conclusion: Is Action Needed?

What’s the takeaway here? A legal scholar might say that unelected officials should stick to law application rather than trying to rewrite the rules of the game. Alderoty insists that Hinman’s speech should not even be part of serious legal discourse regarding security classifications. Only time will reveal if this investigation will bear fruit or just be another entry in the ever-growing book of “What Were They Thinking?”

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