Thomas Hodge, the founder of Crypto and Policy, recently released a petition urging Gary Gensler, the candidate for US Securities and Exchange Commission Chair, to “end the war on XRP,” or to drop the SEC case against Ripple, until he is approved.
The petition further requests that Gensler launch an investigation into the Commission’s former chair, Jay Clayton, and former Division of Corporation Finance Director, William Hinman. The XRP supporter wants Gensler to look into the former SEC officials’ “possible financial reasons for favouring Bitcoin and Ethereum” as well as “harming XRP” while in office.
The petitioner further alleged that Jay Clayton and William Hinman “took money from companies” and added:
While Clayton and Hinman were in office, they were asked if Bitcoin and Ether were securities. They said very clearly, on the record: no they are not securities so keep trading them. They both took money from companies with a direct or clear indirect interest in those public statements.
According to the XRP advocate, Hinman “received millions of dollars in payments” from a member of the Ethereum Enterprise Alliance, Simpson Thacher, a law firm, and that Hinman “collected checks from the firm.”
Hodge also mentioned regulatory confusion and the status of XRP, claiming that during Jay Clayton’s leadership, the former chair did not try to provide guidance about whether XRP is a security:
“But on his final day in office, Clayton had his SEC file a massive lawsuit against Ripple, claiming it had sold XRP as illegal unregistered security for seven years. […] The SEC alleged that Ripple and all holders of XRP should have known for the last seven years that XRP was security when the SEC itself repeatedly said it didn’t know it until the day it filed the lawsuit in December 2020.”
In terms of the Ripple SEC lawsuit, the Commission was recently asked to share critical facts about how it determined that Bitcoin and Ether were not shares, while Ripple’s native cryptocurrency, XRP, allegedly is.
Meanwhile, former SEC Chairman Jay Clayton claimed that Bitcoin was considered a nonsecurity prior to his service, and therefore the SEC’s authority over the currency was “indirect.” Clayton, on the other hand, claimed that Bitcoin could be controlled.
188 Interactions, 4 today