According to John Deaton in a Friday tweet, William Hinman was involved in profit sharing with a crypto firm while still in office as the head of SEC’s Corporate Finance. As a matter of concern, this was during the period he made a controversial statement regarding Ethereum (ETH). 

Per the update, William Hinman got $7.8 million in profit sharing in 2017. He also received $1.8 million from Simpson Thatcher, a partner of the Ethereum-related firm, in 2018.

2017 Hinman got $7.8M in profit sharing and 2018 he got $1.8M in profit sharing – in addition to “retirement” money. This is why there was a complete criminal bar against him having any contact with Simpson Thacher. Yet, he disobeyed the SEC Ethics Office again and again. https://t.co/eVpwojpwkU pic.twitter.com/3LGc2ZYLoR

— John E Deaton (213K Followers Beware Imposters) (@JohnEDeaton1) September 2, 2022

Being an officer of the SEC by then, this profit-sharing involvement was a huge conflict of interest. Back then, the securities watchdog ordered Hinman to avoid Thatcher but disobeyed.

“This is why there was a complete criminal bar against him having any contact with Simpson Thacher. Yet, he disobeyed the SEC Ethics Office again and again,” John Deaton wrote. 

John Deaton is the attorney representing over 70,000 XRP holders in the ongoing lawsuit between Ripple and the SEC. He has been an active supporter of Ripple in the legal battle as he believes that the SEC is just all out to assault the crypto industry.

The @SECGov claims that it is withholding all the edits and Drafts of the Hinman Speech as it was created in anticipation of litigation. What litigation were they anticipating when drafting the speech? It’s all BS and the SEC is deliberately hiding the information. https://t.co/Ligf88uBdH

— John E Deaton (213K Followers Beware Imposters) (@JohnEDeaton1) September 2, 2022

Read Also: Attorney John Deaton to SEC: Go After Ripple If You Have a Case, but Don’t Hurt XRP Investors

SEC Conceals Hinman’s Statement

The Ex-SEC official, William Hinman is a very crucial element in the ongoing XRP lawsuit filed against Ripple, the leader in enterprise blockchain and crypto solutions, by the SEC. 

In 2020, the SEC filed a case against the San Francisco-based crypto company alleging that Ripple sold unregistered securities. Almost two years down the line, the court battle is yet to end. The Ripple-SEC case is now regarded as the crypto legal tussle of the century. 

In 2018, Hinman made a very critical speech and the SEC employed many tactics to withhold the documents associated with the speech. However, Ripple has not relented from demanding the release of the documents. 

Read More: SEC Files Reply Brief to Defend Its Refusal to Release Hinman’s Speech Drafts

During the speech, Hinman asserted that Ethereum (ETH) isn’t a security. The SEC believes that divulging these documents and drafts would place Ripple Labs in a better position to win the case.

Meanwhile, another former SEC official, John Berry, has claimed that Bitcoin (BTC), Ethereum (ETH), and Ripple digital token XRP are similar. He meant that XRP should be treated like the two largest cryptocurrencies.

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The post John Deaton Reveals that Hinman Received Over $9 Million from an Ethereum-Related Firm appeared first on Times Tabloid.

John Deaton, the founder of Deaton Law Firm and CryptoLaw, has reacted in detail to Gary Gensler’s gross SEC overreach. The renowned attorney cited that the SEC has limited jurisdiction over the crypto industry. He added that the “front line regulation of digital assets belongs with the Commodity Futures Trading Commission (CFTC).”

“The Supreme Court may have recently struck down overreach by the Environmental Protection Agency, but at the Securities and Exchange Commission, chairman Gary Gensler remains undeterred in expanding the agency’s power beyond its constitutional boundaries,” John Deaton wrote. 

“The Securities Act of 1933 lists the types of securities regulated by the SEC, including investment contracts. In 1946, the Supreme Court decided the landmark Howey Test, providing a four-part test determining what constitutes an investment contract. Seventy-six years later, Gensler seeks to turn the test on its head with his promises to regulate digital assets in a more intrusive manner than even his trigger-happy predecessor Jay Clayton (more on that in a moment),” he added.

Regardless of these constitutional boundaries, Gary Gensler, the SEC Chair, has been bent on attacking crypto projects. When considering the financial requirements to undertake a court battle with the regulatory agency, several crypto projects have succumbed to settlements.  

However, Ripple, the leading cross-border payments service provider, refused to be intimidated by the SEC. Brad Garlinghouse, the CEO of Ripple noted that the crypto company is prepared to battle with the SEC regardless of the large financial involvement. 

Read More: Brad Garlinghouse: Ripple Would Spend Over $100 Million Fighting SEC in Ongoing XRP Lawsuit

According to the Ripple CEO, the legal battle is not for XRP alone but the entire crypto space. A win for Ripple is crucial for the digital assets industry as it will help incite the United States regulatory body to provide clear and unbiased regulations for the crypto industry. 

On the other hand, a win for the SEC in the XRP lawsuit will expand the agency’s power over the cryptocurrency industry which may lead to more stringent regulatory policies. In July, Brad Garlinghouse stated some reasons why he thinks Ripple will win the case. 

Read Also: Judge Torres Rules that John Deaton Will Continue To Represent 67,000 XRP Holders in Ripple-SEC Case

Ripple-SEC Case Lingers

It is worth noting that the Ripple case began in 2020 and was launched by the then SEC Chair, Jay Clayton, who contended that XRP was sold as unregistered security to investors. 

The incumbent SEC Chair Gary Gensler is advancing the case and employing diverse tactics to withhold critical evidence that could exonerate XRP from being classified as a security. To this end, the Presiding Judge slammed the agency for hypocrisy in relation to Hinman’s statement. 

It has become hard to predict when the Ripple-SEC will be concluded as both parties seem to be playing their cards well. However, recent discoveries relating to the case appear to be in favor of the blockchain company. 

Related: Former Comptroller of the Currency Brian Brooks Predicts Settlement in XRP Lawsuit

A former U.S. SEC attorney John Berry stated earlier this month that Ripple’s native token, XRP, is similar to the two top cryptocurrencies Bitcoin (BTC)  and Ethereum (ETH). In essence, he implies that XRP is not a security since both BTC and ETH are not classified in that category. 

In the ongoing Ripple-SEC legal tussle, John Deaton has continuously shown support for the blockchain solutions company. The SEC even attempted to block him from offering legal assistance to Ripple in the enduring XRP lawsuit but failed.

Currently, John Deaton serves as the legal attorney (amici curiae) representing over 70,000 Ripple native token holders (XRP investors) in the class-action lawsuit against the securities watchdog.

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The post Ripple-SEC Case: John Deaton Reacts to Gary Gensler’s All-Out Assault on the Crypto Industry appeared first on Times Tabloid.

The SEC’s ex-attorney made this argument in a recently surfaced video clip shared on YouTube. In his comments, he said that XRP possesses some similarities with Bitcoin (BTC)  and Ethereum (ETH). 

He also spotted the differences between the three digital assets, citing that all three do not fit for the Howey Test. Therefore, John Berry implies XRP isn’t a security as opposed to the claims by the SEC which led to the ongoing XRP lawsuit filed against Ripple. 

Read Also: The Judge Handling Ripple-SEC Lawsuit Pinpoints Hypocrisy in SEC’s Arguments

Speaking of the Howey Test, Investopedia describes it as “the United States Supreme Court case for determining whether a transaction qualifies as an investment contract, and therefore would be considered a security and subject to disclosure and registration requirements under the Securities Act of 1933 and the Securities Exchange Act of 1934.”

In the video, John Berry answered a question from the renowned litigator Sean Prosser. Sean Prosser asked, “if Ripple could have any defenses should the SEC apply the Howey Test.” 

In response, the former SEC employee said, “The SEC, I think, is getting more aggressive. XRP as a token is a lot similar to Ether which is then similar to BTC.” Additionally, he remarked that the SEC has never brought a case against Ether (ETH) despite its similarity with XRP. 

Read Also: Ripple Moves To Resist SEC’s Attempt to Keep Hinman Documents Away from XRP Lawsuit

This statement by John Berry is similar to William Hinman’s statement made in 2018 about Ethereum (ETH). Hinman’s statement which confirmed that ETH isn’t a ‘security’ turned out to be very critical in the ongoing Ripple-SEC lawsuit. 

The SEC, on the other hand, has employed various tactics to conceal the drafts and other documents relating to Hinman’s statement from Ripple and the presiding court.

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The post Ex-SEC Attorney Shares Reason Why XRP Should Be Treated Like Bitcoin and Ethereum appeared first on Times Tabloid.