XRP vs SEC: 3 Shocking Ways the Hinman Report Controversy Could Delay Ripple’s Settlement

Ripple supporters are disappointed after the SEC Office of Inspector General released the SEC Hinman report. The report was supposed to clarify former official William Hinman’s controversial speech on ETH’s status. However, it has instead sparked more criticism. Legal experts and XRP supporters like attorney John Deaton and MetaLawMan pointed to major inconsistencies, alleging bias and ethical whitewashing.

This recent event emerges as the XRP SEC case approaches a potential settlement. The agency dropped its appeal, and Ripple withdrew its cross-appeal, but the SEC Hinman report release has complicated future prospects. Many question the commission’s internal procedures and possible influence from corporate connections. The report’s narrow scope and lack of transparency fuel public mistrust in the agency.

Controversial Findings Spark Backlash

Legal analysts swiftly examined the Hinman document, expressing frustration with its evasiveness and bias. Prominent Ripple supporter John Deaton strongly criticized it, calling the Inspector General either incompetent or willfully misleading. The attorney emphasized that the report’s claim that Hinman’s Ethereum holdings did not constitute a conflict of interest contradicted the agency’s ethics regulations.

I’ve seen white washing before but this one takes the frickin🎂

The IG is claiming that even if Hinman owned ETH when he gave the speech, it would not have constituted a violation, or even a conflict of interest. GTFOH

I challenge her to find an ethics lawyer who will support… https://t.co/vZDRfWIK0s

— John E Deaton (@JohnEDeaton1) April 11, 2025

Further scrutiny by Deaton uncovered meetings between the former official and his previous firm, Simpson Thacher. This occurred despite warnings from the Commission’s ethics staff. Simpson Thacher had ties to the Canaan IPO, which involved ETH mining equipment, suggesting possible favoritism toward Ethereum. These findings raised doubts about Hinman’s actions and the commission’s oversight mechanisms.

Narrow Scope Undermines Report Credibility

MetaLawMan, a legal expert monitoring the XRP SEC case, criticized the document for its narrow scope. He stated the inquiry focused only on whether Hinman committed crimes, overlooking broader ethical and procedural issues. This restricted focus created the suspicion that the report mainly aimed to protect the SEC’s reputation.

Furthermore, MetaLawMan observed that the document’s completion occurred under current Chair Gary Gensler’s leadership, suggesting possible institutional bias within the agency. This increased worries for crypto supporters who argue that the commission continues to operate under unclear decision-making processes. Critics worry this situation could harm broader regulatory reform efforts and public faith in cryptocurrency oversight.

Implications for the XRP SEC Case

The publication of the Hinman document coincides with crucial developments in the ongoing Ripple lawsuit. Both the regulator and the company recently withdrew their appeals, leading many to expect a quick settlement soon. However, the controversy around this report revived discussions about the lawsuit’s basis and the impartiality of key regulatory officials.

Some legal experts predict an upcoming settlement, but others warn that the report’s inconsistencies might cause delays. The report casts doubt on the validity of Hinman’s speech, a key element in the SEC case. This development potentially allows Ripple to further challenge the agency’s narrative. The effects of such a move could shape future lawsuits involving digital assets.

The Road Ahead: More Questions Than Answers

For now, the SEC Hinman report leaves the XRP community facing more questions instead of getting clear answers. Rather than providing closure, this release has raised serious concerns about the SEC’s actions and accountability. Ripple supporters argue that the report’s flaws emphasize the need for better oversight and changes within the Commission.

Looking ahead, the Ripple lawsuit is a key test for American regulators’ approach to crypto oversight. The issues surrounding Hinman’s speech and the related report highlight difficulties in applying securities law to evolving digital markets. Whether the report will benefit Ripple is uncertain, but the legal battle is far from over.