Cryptocurrency lawyer John E Deaton has accused the United States Securities and Exchange Commission (SEC) of stonewalling and avoiding transparency in their proceedings against Ripple Labs. Deaton expressed this opinion following the filing of a complaint by whistleblower and anti-corruption watchdog organization Empower Oversight, who sought documents from the SEC using a Freedom of Information Act (FOIA) request.

The FOIA filed in August of 2021 requested information regarding conflicts of interests or selective enforcement with regards to cryptocurrencies. This followed the revelation that a former SEC official, William Hinman, had received a compensation of nine million dollars from his former employer, Simpson Thacher, while helping to direct the SEC in enforcement decisions concerning cryptocurrencies.

The watchdog proceeded to accuse the SEC of withholding relevant documents and emails, which Ripple Labs needs in order to strenghten their defence. Commenting on the situation, Deaton noted; “It is safe to say that the SEC is stonewalling because they are hiding the truth. I know that there are good people who work at the SEC, but the leadership is corrupt. Hard stop.”

The complaint filed by the watchdog requested that the SEC provide all the communications with regards to cryptocurrencies between senior SEC members and their past employers, as well as related entities. Additionally, the complaint noted how contradictory the current SEC’s decision to brand XRP as a security was with the former chairman Hinman’s declaration deeming Ethereum (ETH) as not being a security.

This discrepancy has resulted in the legal battle between the SEC and Ripple Labs being extended for years. In response to the watchdog’s complaint, Deaton expressed a call to action, saying; “Let the public see the emails and documents. Thank you @EMPOWR_us. It shouldn’t be this difficult.”

Cryptocurrency lawyer John E Deaton has expressed his opinion that the United States Securities and Exchange Commission (SEC) leadership is corrupt and is avoiding transparency in their proceedings against Ripple Labs. This opinion was formed following a recently filed complaint from the non-profit whistleblower and anti-corruption watchdog organization Empower Oversight, making a request for the SEC to provide documents and emails with regards to cryptocurrencies to the company.

The Freedom of Information Act (FOIA) submitted in August 2021 asked for applications of conflicts of interests or selective enforcement with regards to cryptocurrencies, after the revelation of a former SEC official William Hinman receiving a compensation of nine million dollars from his former employer Simpson Thacher, whilst guiding the SEC’s decision making with regards to cryptocurrencies.

The watchdog accused the SEC of withholding the required documents and emails, that Ripple Labs need in order to strenghten their defence. John E Deaton, who is a representative of a group of XRP holders in the case, took to Twitter to vent out his frustrations with the SEC and express to the public that the SEC's actions are unjust: “It is safe to say that the SEC is stonewalling because they are hiding the truth. I know that there are good people who work at the SEC, but the leadership is corrupt. Hard stop. Let the public see the emails and documents. Thank you @EMPOWR_us. It shouldn’t be this difficult.”

The complaint was demanding for the release of all communications with regards to cryptocurrencies between senior SEC members and their past employers, as well as related entities. This would help to clear up the contradictory decision to label XRP as a security, that was in stark contrast with former chairman Hinman’s declaration deeming Ethereum (ETH) as not being a security.

The protracted legal battles between the SEC and Ripple Labs have been dragging on for years, leading to John E Deaton making a call to action that would allow the public to scrutinize the SEC’s hidden agenda should it exist: “Let the public see the emails and documents. Thank you @EMPOWR_us. It shouldn’t be this difficult.”



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