SEC Under Fire as Pressure Mounts for IG Report Release Amid Controversial Treatment Allegations

Pressure Mounts on Gensler to Release IG Report as New Letter Exposes XRP’s Unfair Treatment and Ethereum’s Free Pass

As the cryptocurrency market continues to reel from the ongoing saga between Ripple Labs, Inc. and the United States Securities and Exchange Commission (SEC), the pressure is mounting on SEC Chairman Gary Gensler to release an Inspector General (IG) report. This latest development comes as a new letter exposes alleged unfair treatment of XRP by the regulatory body and raises eyebrows regarding Ethereum’s seemingly free pass.

According to recent reports, Empower Oversight, a non-profit organization focused on government accountability, has called upon Congress to release the long-overdue IG report. The investigation in question revolves around allegations that SEC’s former Division of Corporation Finance director, William Hinman, may have violated ethics rules about conflicts of interest during his tenure.

The controversy is centered around Hinman’s 2018 speech, where he declared Ethereum’s digital token, Ether, not a security. This sudden shift in stance sparked widespread confusion and led to heated debates within the crypto community.

It has been almost two years since the SEC requested an IG investigation into Hinman’s actions, with no report released yet. Empower Oversight is now demanding accountability from Gensler’s administration, citing concerns over the lack of transparency surrounding this matter.

The pressure on Gensler comes as a new letter reveals what can only be described as shocking disparities in treatment between XRP and Ethereum by the SEC. The correspondence, penned by Tristan Leavitt, highlights how SEC Commissioner Joseph Grundfest expressed deep reservations regarding the SEC’s actions against Ripple Labs and its affiliates. In his 22-page missive, Grundfest posited that there is no material distinction between the operation of Ether and XRP, and thus, imposing securities law obligations on one while not others raises “fundamental fairness questions” about the exercise of Commission discretion.

This turn of events has sparked intense debate within the cryptocurrency space. Many are calling for an immediate release of the IG report to shed light on these alleged irregularities. Others believe that Gensler’s administration is deliberately stonewalling this matter, fearing the repercussions on the market should the truth be revealed.

Regardless of one’s stance on the issue, it remains clear that transparency and accountability are the minimum requirements for maintaining trust in any regulatory body. It is high time for SEC Chairman Gary Gensler to step up and release the IG report without further delay.

By: Anjali Belgaumkar

Source: coinpedia.org