Hinman Report Controversy Sparks Ripple Community Unease

Updated

April 15, 2025

Gambar Hinman Report Controversy Sparks Ripple Community Unease

Jakarta, Pintu News – The long legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) entered a critical phase following the release of an Inspector General (IG) report on William Hinman, a former SEC Director.

While expected to provide clarity regarding Hinman’s controversial 2018 speech, the report’s findings have instead led to disappointment among Ripple supporters, adding to the uncertainty in the ongoing lawsuit and potential settlement of the case.

Legal Critique of Report Findings

I’ve seen white washing before but this one takes the frickin🎂

The IG is claiming that even if Hinman owned ETH when he gave the speech, it would not have constituted a violation, or even a conflict of interest. GTFOH

I challenge her to find an ethics lawyer who will support… https://t.co/vZDRfWIK0s
— John E Deaton (@JohnEDeaton1) April 11, 2025

Legal experts involved in the Ripple (XRP) case criticized the content and scope of the Inspector General’s report. John Deaton, a lawyer defending Ripple (XRP) holders, challenged the credibility of the report.

Deaton argued that the report’s conclusion that Hinman’s ownership of Ethereum did not pose a conflict of interest contradicted the SEC’s policy prohibiting employees from owning tokens to avoid ethical violations. Despite warnings from within the SEC, Hinman continued to interact with Simpson Thacher, the law firm he once worked for, which raises doubts about the credibility and neutrality of his statements.

Limited Scope of Investigation

MetaLawMan, a legal analyst, emphasized that the investigation only highlighted Hinman’s alleged violation of criminal law, but did not explore other ethical concerns or conflicts of interest that may have influenced Hinman’s 2018 speech.

This approach ignores big questions about the SEC’s internal governance and whether there are sufficient safeguards in place to prevent regulatory bias. Observers argue that the investigation should have questioned whether Hinman’s speech was truly private as claimed in the Ripple (XRP) lawsuit or contained allocation decisions made by the SEC based on self-interest.

Impact on Ripple Lawsuit and Future Implications

The release of the Hinman report adds complexity to the Ripple (XRP) lawsuit, although recent developments suggest a possible resolution. This could mean that the SEC is trending towards a settlement and as a result is ready to withdraw their appeal while Ripple has also withdrawn its cross-appeal.

However, the ongoing controversy regarding the IG report’s conclusions raises questions about the outcome of the case. Unanswered questions regarding Hinman’s actions could also have broader implications for the cryptocurrency industry. Regulatory clarity remains a critical issue for market participants, and perceived shortcomings in the investigation could influence how future enforcement actions are viewed.

Conclusion

For the Ripple community in particular, this case only shows the never-ending struggle with unclear regulation. However, despite this, the legal battle regarding Ripple (XRP) and the settlement of this lawsuit can now be seen as a medium-term issue, and the scandal with the Hinman report is only the beginning of an ongoing conflict regarding regulators’ unfair treatment of cryptocurrencies.

Also Read: Will the Ripple vs SEC Case Be Resolved Soon? Check out the Expert Review!

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