SEC's Hinman Report Sparks XRP Community Disappointment

The US Securities and Exchange Commission (SEC) has released the Inspector General’s report on Bill Hinman’s controversial speech, which has sparked controversy within the XRP community. Despite this development, the community remains disappointed, citing a lack of clarity and inconsistencies in the report.

Experts such as John Deaton and MetaLawMan have highlighted several issues with the report. Deaton, a prominent XRP lawyer, has pointed out that the Inspector General’s findings are either incompetent or biased. He noted that the report’s claim that owning Ethereum (ETH) would not constitute a conflict of interest contradicts SEC policies that prohibit token ownership to prevent conflicts. Deaton also raised questions about Hinman’s meetings with partners at Simpson Thacher, one of whom was involved in the Canaan IPO, a company that manufactured Ethereum mining equipment. This raises concerns about potential favoritism or influence.

Hinman had previously claimed that his speech, which deemed Ethereum as a non-security, represented his personal opinion. However, the Inspector General stated that the speech was collaborative, further complicating the matter. Deaton had previously urged the SEC to release the Hinman report to provide more clarity to the ongoing crypto case, including the XRP lawsuit. Although the SEC has publicized the report, Deaton remains disheartened due to the Inspector General’s biased statements.

MetaLawMan, another XRP proponent, has also criticized the report, stating that the investigation was limited to determining whether Hinman broke any criminal laws rather than thoroughly examining potential conflicts of interest or ethics violations. He also highlighted the biased nature of the investigation, noting that it was conducted under the Gensler regime.

In a surprising development, the US SEC dropped its appeal in the XRP lawsuit, after which Ripple withdrew its cross-appeal. Despite this development, the ultimate settlement of the case remains uncertain, sparking multiple interpretations. Many believe that an imminent settlement is likely in the XRP case. However, the Hinman report’s inconsistencies have further complicated the Ripple lawsuit, with uncertain implications for its outcome.