Many high-profile people have joined forces with Stuart Alderoty to demand an investigation into the former SEC official.
Stuart Alderoty, Ripple’s chief legal officer, has demanded an investigation into William Hinman’s intent to make his now infamous statements in 2018.
Following the disclosure of Hinman’s documents on June 13, Alderoty called for an investigation as part of a Twitter conversation. According to records, Hinman gave his speech despite warnings from other SEC divisions.
In a 2018 lecture, Hinman claimed that the Ether ETH ticker down $1,739 was not a security because it had been “pretty decentralized,” though he did not elaborate on what criteria had to be met to reach that conclusion.
Newly drafted public documents, according to Alderoty, show that Hinman ignored suggestions from other SEC employees that his “speech contained fabricated analysis without any legal basis,” and the result was a speech that confused the cryptocurrency industry about what qualifies as a security.
Unelected bureaucrats should not try to pass new laws, according to Alderoty, who also said that “Hinman’s speech should no longer be used in serious discussions about whether or not tokens are security.”
In a June 13 Twitter thread, Ripple CEO Brad Garlinghouse joined Alderoty in criticizing the regulator, calling the choice to continue speaking in the face of “so many objections” “absurd”.
In an interview with Cointelegraph, pro-XRP lawyer and CryptoLaw creator John Deaton stated that he thinks an investigation is necessary, noting that Hinman’s use of the term “Ether Speech” raises concerns about the speech’s motivation.
Hinman’s apparent connection to the Enterprise Ethereum Alliance, a group that promotes the use of Ethereum blockchain technology, is included in Deaton and Alderoty’s statements about Hinman’s goals.
Hinman worked for Simpson Thacher & Bartlett LLC, a law firm that is part of the Ethereum Enterprise Alliance, before and after working for the SEC.
Alderoty’s post from Ripple demands an investigation into Bill Hinman’s famous speech that first appeared on BTC Wires.