Ethereum Insider Says ‘Hinman’s Speech Shall Live in Infamy’ As SEC is Hiding More Than Motives

Steven Nerayoff, an early Ethereum adviser, comments on Hinman’s June 14, 2018, remark, saying that the date of the infamous speech shall live in infamy.

Steven Nerayoff, a prominent cryptocurrency adviser and advocate, has made a shocking allegation regarding the infamous speech by William Hinman, former director of SEC’s Corporation Finance.

In a recent X post, popular XRP community member @digitalassetbuy shared a document relating to a meeting held at the SEC that allegedly birthed the controversial Hinman speech.

According to the document, a meeting was scheduled on March 28, 2018, between some top crypto stakeholders and SEC’s Corporation Finance staff.

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Notably, @digitalassetbuy described the meeting as the presentation that gave Ethereum the free pass speech. Recall that Hinman declared Ethereum and Bitcoin as non-securities during his infamous speech on June 14, 2018.

The speech, which has stirred major debate since the beginning of the SEC v. Ripple lawsuit, is described by many as the “Ethereum free pass.”

Date of Hinman’s Speech Shall Live in Infamy

Reacting to @digitalassetbuy’s tweet, Nerayoff stated that the date of Hinman’s speech “shall live in infamy.” Nerayoff, an early Ethereum adviser, noted that the main motive behind Hinman’s infamous speech is being concealed.

“Wait until you see what else happened this day to silence me & cover up their sin(s),” he added.

He said, “They’re hiding more than the motives behind the speech…”

Oh, this date shall live in infamy. Wait until you see what else happened this day to silence me & cover up their sin(s). They’re hiding more than the motives behind the speech by #DirtyHinman. #CryptoJudas #CrookedElbowJoe @SECGov @digitalassetbuy @Leerzeit @sentosumosaba…

— Steven Nerayoff (@StevenNerayoff) September 25, 2023

It is worth mentioning that the FBI charged Nerayoff with alleged extortion in 2019. However, the authorities dropped the case in May 2023.

Four months after the case was withdrawn, Nerayoff alleged that the FBI targeted him due to his knowledge of Ethereum ICO. He noted that the plot also involved other top government agencies, including the SEC and the Justice Department.

Empower Oversight Seeks Crypto Communication From SEC’s Clayton Tenure

Meanwhile, debate regarding Hinman’s speech was ignited within the crypto community following Empower Oversight’s recent FOIA request. 

Per an announcement yesterday, Empower Oversight said it had submitted a new FOIA seeking communications between former SEC chair Jay Clayton and others regarding crypto. 

Empower Oversight’s new FOIA submission is focused on the SEC’s improper handling of crypto enforcement during Clayton’s tenure. 

“The request stems from Clayton’s statements regarding Bitcoin and other senior officials’ statements on Ether suggesting that they were not securities subject to SEC enforcement jurisdiction, only to have the SEC file suit as Clayton was leaving the agency against Ripple related to another cryptocurrency, XRP, alleging that it was a security,” an excerpt of the announcement read.

Furthermore, Empower Oversight mentioned that Clayton later joined One River Management, a hedge fund focused on Bitcoin and Ethereum, after he left the SEC.

XRP Enthusiasts React to Empower Oversight’s New FOIA

Expectedly, the development stirred reactions, with XRP enthusiasts raising issues regarding potential corruption within the SEC.

Commenting on the development, pro-XRP lawyer Bill Morgan said Empower Oversight gave a “perfect summary” of Clayton’s conflict of interest.

Empower Oversight with the perfect summary of the Clayton conflict. He disgraced the SEC and his position as chairman. He benefitted from his conflictual conduct. https://t.co/wBbWzyPAp6 pic.twitter.com/BXX68oPczq

— bill morgan (@Belisarius2020) September 25, 2023

In addition, Attorney John Deaton, the lawyer representing thousands of XRP holders in the Ripple lawsuit, pointed out that Clayton was the only SEC commissioner who read the draft of Hinman’s speech before it was given at Yahoo Finance’s All Market Summit.

According to Deaton, Hinman never sent a copy of the “biggest speech in the crypto industry” to SEC commissioner Hester Peirce, popularly called “Crypto-Mom.”

Let’s NOT FORGET Clayton was the ONLY Commissioner to see and read the draft speech before it was given. Hinman did NOT send a copy to @HesterPeirce. That’s right, Crypto-Mom didn’t get a heads up regarding the biggest speech in Crypto history. 🤔 https://t.co/3zBrgNWy7c

— John E Deaton (@JohnEDeaton1) September 25, 2023