CPAC Files Complaints Amid Claims of SEC Bias Towards Ethereum Over XRP

Key Insights:

• Pro-XRP attorney alleges SEC favoritism towards Ethereum, sparking renewed controversy in the cryptocurrency regulatory landscape.
• CPAC submits formal complaints against former SEC official William Hinman, citing ethical concerns and potential conflicts of interest.
• The XRP community supports CPAC’s actions, which highlight the need for transparent and fair regulatory standards in the cryptocurrency industry.

In recent developments, Bill Morgan, a prominent pro-XRP attorney, has once again brought attention to allegations of partial regulatory practices by the U.S. Securities and Exchange Commission (SEC). Morgan claims the SEC has shown undue favoritism towards Ethereum (ETH) while unfairly targeting XRP. His statements coincide with formal complaints being filed by the Conservative Political Action Conference (CPAC), which underscores the growing scrutiny over former SEC official William Hinman’s actions and affiliations.

Bill Morgan has been vocal on social media, particularly on X, where he expressed concerns over what he refers to as “ETH Gate.” Morgan points to a series of events that he believes illustrate a pattern of biased regulatory decisions favoring Ethereum. He recalls that the SEC began its investigation into Ripple in April 2018, a period during which XRP was the third-largest cryptocurrency by market capitalization, just behind Ethereum.

Morgan’s frustration centers on the timing of the investigation, which coincided with Hinman drafting a speech that would later clarify Ethereum’s regulatory status. He questions the integrity of the regulatory process, suggesting that the SEC’s actions were influenced by undisclosed interests. His critique is aimed at highlighting perceived discrepancies in the SEC’s treatment of different cryptocurrencies.

CPAC’s Involvement and Formal Complaints

The Conservative Political Action Conference (CPAC) has taken a proactive stance in addressing these concerns. Through its Center for Regulatory Freedom, CPAC has filed formal complaints with both the New York and California Bar Associations. The complaints allege unethical behavior and potential conflicts of interest involving William Hinman during his tenure at the SEC.

Andrew Langer, Director of the CPAC Foundation’s Center for Regulatory Freedom, has been instrumental in this effort. Langer’s submissions to the bar associations call for a thorough investigation into Hinman’s actions, citing his affiliations and professional conduct. The complaints are based on a series of internal SEC emails and communications, which were disclosed during the discovery process in the ongoing SEC lawsuit against Ripple Labs.

William Hinman’s Speech and Its Aftermath

William Hinman’s 2018 speech played a critical role in shaping the regulatory landscape for cryptocurrencies. In this speech, Hinman indicated that Ethereum should not be classified as a security, which effectively placed it outside the stringent regulatory framework that applies to securities transactions. This distinction provided Ethereum with a significant regulatory advantage.

At the time, Hinman had recently transitioned from his role as a partner at Simpson Thacher & Bartlett (STB), a law firm with deep ties to the blockchain industry. STB was also a member of the Enterprise Ethereum Alliance (EEA), an organization dedicated to promoting Ethereum’s adoption in various business sectors. CPAC’s complaint raises concerns about a possible conflict of interest, suggesting that Hinman’s former firm stood to benefit from the favorable regulatory status granted to Ethereum.

Reactions from the XRP Community

The XRP community has been closely following these developments, expressing support for the actions taken by CPAC and the statements made by Morgan. They argue that XRP has faced disproportionately harsh regulatory scrutiny compared to Ethereum, a situation they attribute to potential biases within the SEC.

Ripple Labs, the company behind XRP, has been embroiled in a legal battle with the SEC since late 2020 when the SEC filed a lawsuit classifying XRP as a security. This legal action has had a profound impact on XRP’s market position and has been a focal point for discussions around regulatory fairness in the cryptocurrency industry.

At the time of reporting, XRP was trading at $0.5247, reflecting a 0.18% decrease in the past 24 hours.