XRP News Today: Will SEC Investigation into Conflicts Affect Outcome of Ripple Case?

Despite warnings from the SEC’s Ethics Division, Hinman continued to meet with Simson Thacher during his time at the SEC.

If the IG finds that the SEC acted unethically, it could be another victory for the U.S. digital asset space. The IG’s findings could prompt U.S. lawmakers to rein in the SEC and its regulation-by-enforcement stance toward digital assets.

The Office of the Inspector General could release the results of its investigation at any time.

On Monday, July 9, amicus curiae attorney and U.S. Senate candidate for Massachusetts John E. Deaton raised concerns about the SEC’s practices.

John E. Deaton’s plans for US regulators highlight conflict issues

John E. Deaton spoke about regulatory capture and said:

“I will introduce a bill that would create a 3-5 year statutory ban that would prevent regulators (including lawyers) from working in the industry they were just regulating. (…) They will not be able to leave the SEC and immediately go to work for a hedge fund. I plan to permanently close the revolving door that exists in our federal agencies.”

The reference to SEC members moving to hedge funds was well received.

In March 2024, Empower Oversight sent a FOIA request for records regarding potential ethics violations. The letter was addressed to William Hinman and former SEC Chairman Jay Clayton. Empower Oversight claimed that Jay Clayton had publicly said BTC was not a security and supported Hinman’s speech about ETH.

After leaving the SEC, the former SEC chairman reportedly joined the crypto hedge fund One River Asset Management. One River Asset Management focused on BTC and ETH, but not on XRP.

The exposure of crypto conflicts of interest within the SEC could end its plans to appeal unfavorable court rulings. Currently, the SEC’s intentions to appeal the ruling on programmatic sales of XRP still persist, another headwind for XRP.

In July 2023, Judge Analisa Torres ruled that the programmatic sale of XRP did not meet the third part of the Howey test. XRP could face selling pressure if the SEC appeals the Ripple ruling.

Investors should remain vigilant while the court ruling is pending. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay tuned with our latest updates and insights to navigate the crypto market.

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