Empower Oversight Demands Answers From SEC in Ripple Vs. SEC legal Battle
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Empower Oversight, a public interest transparency organization, is calling on the Securities and Exchange Commission (SEC) to disclose documents related to a speech made by former executive William Hinman in 2018 on cryptocurrencies.
The speech, which suggested that Ethereum was not a security, but left the status of other cryptocurrencies unclear, has been central to the SEC’s case against Ripple, which is facing allegations of illegally selling unregistered securities in the form of its XRP token.
Empower Oversight Call Out The SEC
Jason Foster, founder, and president of Empower Oversight accused the SEC of obstructing transparency organizations and demanded answers about what the agency knew regarding Hinman’s speech and when they knew it. “The public deserves answers from the SEC,” Foster said.
The legal battle between Ripple and the SEC has been ongoing since December 2020, when the SEC first filed a lawsuit against the cryptocurrency company.
If Ripple loses the case, it could set a precedent for future regulatory action against other initial coin offerings (ICOs) and tighter regulation of the cryptocurrency industry.
Empower Oversight’s Fight for Transparency
Empower Oversight has been vocal in its fight for transparency and accountability from the SEC. In December 2021, the organization filed a records request with the agency, and in October, it filed an opposition to the SEC’s motion for summary judgment in an ongoing lawsuit over documents related to conflicts of interest and selective enforcement in cryptocurrency cases.
Implications for the Cryptocurrency Industry
The outcome of the SEC’s case against Ripple could have far-reaching consequences for the cryptocurrency industry. If Ripple is found guilty of selling unregistered securities, it could open the floodgates for similar actions against other crypto projects.
This would likely lead to tighter regulation of the industry, which has so far been operating with little oversight.
Empower Oversight is urging individuals with first-hand information that could assist in their inquiries to come forward and contact them confidentially. The organization is committed to uncovering the truth about the SEC’s actions and providing the public with access to information that has been kept hidden.
