The US Securities and Stock Exchange Commission (SEC) rejected the allegations that former Corporate Finance Director Bill Hinman had violated the ethical rules during his term of office. The audit was carried out by an Empower Oversight organization in the light of the documents requested within the scope of the Freedom of Freedom of Information.
Investigation and Ethics Evaluations
Empower Oversight claimed that Hinman had financial ties with Simpson Thacher & Bartlett LLP before Hinman’s Ethereum speech in 2018. The SEC’s internal audit office (OIG) report stated that Hinman reported his financial interests during the recruitment phase and applied the steps proposed by the SEC Ethics Committees.
“Bill Hinman disclosed his financial interest with STB when he started SEC and took the necessary steps within the framework of the Ethical Ethical rules.” – Internal Audit Office (OIG)
Ethereum Speech and Discussions
The report examined the preparation and presentation process of the Ethereum speech held in 2018. Hinman’s speech was stated that Ether did not have the nature of securities, but it was revealed that there were some discussions in the institution. Despite some views of the staff, the Hinman process was claimed to have advanced unilaterally.
“Even if the allegations are reality, there is no conflict of interest for Hinman.” – Internal Audit Office (OIG)
Following the announcement of the report, some circles continued to criticize SEC’s different practices for crypto asset management. The debate created a public question mark on the extent to which the definitions of conflict and the forms of implementation are transparent. SEC tried to prevent confusion by making explanations about which crypto assets will be evaluated within the framework of securities.
Although the SEC report shows that Hinman acts in accordance with the ethical rules determined during his term, it was observed that the discussions in the process did not contribute sufficiently to the clarity. Within the framework of the explanations and measures taken, the implementation of in -house procedures and the expectations of the transparency of the explanations drew attention. This may provide clues about how similar situations will be evaluated in the future.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
