Watchdog sues SEC over FOIA access to docs on potential crypto conflict of interest
Watchdog group Empower Oversight Whistleblowers & Research (EMPOWR) has filed suit against the United States Securities and Exchange Commission to force the agency to comply with a Freedom of Information Act (FOIA) request for access to communications between former SEC officials and their former and future employers.
EMPOWR claimed in its suit that the former SEC officials had a potential conflict of interest regarding cryptocurrency. The suit specifically mentioned former SEC Chair Jay Clayton, former enforcement division director Marc Berger and former director of corporate finance William Hinman. According to the suit:
Hinman was a partner at law firm Simpson Thacher before joining the SEC in 2017. He would return to the firm after leaving the SEC in October 2020.
Berger became a partner at Simpson Thacher after leaving the SEC in 2021, and Clayton joined cryptocurrency hedge fund One River Asset Management in 2021. EMPOWR said:
Simpson Thacher was a member of the advocacy organization Enterprise Ethereum Alliance that sought to “drive the use of Enterprise Ethereum.” EMPOWR stated that Hinman reportedly received millions of dollars from the law firm during his tenure at the SEC.
Hey @SECGov, this is not a game. The law requires you to do these searches and you have known it all along.Time for the foot-dragging and dishonesty to stop. Be serious professionals. Do the searches and produce the documents.From our complaint, available here:… https://t.co/pocmaHE3tq pic.twitter.com/0FhKGuPo61
EMPOWR saw Hinman's continuing ties to his old law firm as possibly a conflict since, while at the SEC, Hinman delivered the speech “Digital Asset Transactions: When Howey Met Gary (Plastic),” stating that Ether (ETH) is a commodity,
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