Prominent crypto attorney John Deaton is turning up the pressure on the U.S. Securities and Exchange Commission (SEC), calling for the immediate release of the long-sought Inspector General (IG) report related to former SEC Director Bill Hinman’s controversial 2018 “Ether Speech.”
In a recent post on X, Deaton urged current SEC leadership, including acting Chair Paul Atkins, Commissioner Hester Peirce, and top official Mark Udeya, to support the public release of the internal report. He says doing so is vital to restoring confidence in the regulator’s impartiality, especially as crypto markets remain in limbo over the classification of digital assets.
At the center of Deaton’s call is Hinman’s 2018 speech in which he declared that Ethereum (ETH) was not a security, a statement that has since fueled years of debate over regulatory inconsistencies. Critics, including Deaton, argue the speech created a “free pass” for ETH while leaving other altcoins, like XRP, SOL, and ADA in regulatory purgatory.
Deaton believes the facts surrounding Hinman’s “Ether speech” raise serious concerns about potential conflicts of interest. He insists the IG report must be released so the public can assess whether the SEC’s decisions were made fairly and lawfully.
He pointed to the federal conflict-of-interest statute 18 U.S.C. §208, which bars government officials from participating in matters where they have a personal financial interest. Hinman’s alleged ties to the law firm Simpson Thacher & Bartlett, which had connections to Ethereum-related clients, have drawn increasing scrutiny.
Renewed Momentum Amid SEC Policy Shifts
Deaton has been raising this issue for months, but his latest push comes at a time when the SEC appears to be shifting toward a less aggressive crypto stance. The regulator recently closed cases against several digital asset firms, including Cumberland DRW, Consensys, and Kraken, fueling speculation that a broader policy realignment is underway.
This change has renewed hope among industry advocates that the agency will embrace greater transparency a necessary first step toward building a regulatory framework that’s fair and future-proof.
In a related development, the SEC’s website recently published a document attempting to clarify the regulatory roles of XRP, Solana (SOL), and other altcoins. However, Deaton claims the agency itself did not draft or endorse the document, calling into question the consistency of the SEC’s communications.
A Turning Point?
The Hinman speech has become a flashpoint in the broader debate over crypto regulation in the U.S. For many in the industry, it symbolizes the SEC’s opaque, and at times, selective enforcement approach. Deaton’s demand to unseal the IG report is not just about one speech, it’s about establishing regulatory accountability.
As pressure mounts on regulators to bring clarity to the space, the release of the Hinman documents could be a defining moment, not just for XRP holders, but for the entire crypto ecosystem.
