The direct link between the OIG investigation and the SEC v Ripple case influences SEC plans to appeal against the Programmatic Sale ruling. The SEC may want to avoid exposing any adverse findings from the OIG investigation and scrutiny of the Hinman speech-related documents.

The OIG could release findings from the investigation at any time.

Empower Oversight Intensifies Scrutiny of the SEC

On March 14, Empower Oversight sent a letter to FOIA Officer Raymond McInerney, requesting records regarding possible ethical violations. The letter also raised concerns about former SEC Chair Jay Clayton, stating,

“Additionally, there are potential concerns regarding former SEC Chair Jay Clayton. During his tenor as Chairman, Mr. Clayton publicly stated that Bitcoin is not a security and affirmed Mr. Hinman’s statement that Ether is not a security.”

BTC and ETH saw price spikes in response to the Clayton comments. The SEC filed charges against Ripple Labs on Chair Clayton’s last day at the SEC.

Empower Oversight stated Mr. Clayton joined crypto hedge fund One River Asset Management on leaving the SEC. One River Asset Management reportedly focused on BTC and ETH but not XRP. Former SEC Chair Clayton allegedly had involvement with crypto-related firms while serving as the SEC Chair.

In the letter to the FOIA, Empower Oversight claims,

“In 2022, Mr. Clayton was named as an adviser for Electric Capital, a crypto-focused venture capital firm that was established in 2018, while Mr. Clayton was serving as SEC Chair. Notably, Electric Capital has invested in Consensys, which is a developer of Ether.”

The documents could reveal improper influence over the actions of Hinman and Clayton and efforts of the SEC Ethics division to address possible ethical violations. Importantly, adverse findings could end SEC plans to appeal against the Programmatic Sales of XRP ruling.

XRP Price Action