A long-running ethics dispute involving former SEC official Bill Hinman has reached a turning point—at least officially.
A newly released, heavily redacted report from the agency’s Office of Inspector General found no wrongdoing on Hinman’s part, despite accusations of conflicts tied to his famous 2018 Ethereum speech.
The internal review followed a FOIA push by Empower Oversight, a watchdog group that questioned Hinman’s relationship with his former law firm, Simpson Thacher, which is linked to the Ethereum ecosystem. While critics argued that these connections could have biased his public declaration that Ether isn’t a security, the report concluded he followed ethics protocols, disclosed financial interests, and adhered to guidance from SEC ethics counsel.
Still, the release hasn’t quieted the storm. Critics of the agency—especially those driving the so-called “ETH Gate” narrative—point to red flags the report glosses over. Emails revealed that Hinman crafted and pushed forward the Ethereum speech himself, brushing aside resistance from the SEC’s legal team. Empower Oversight claims this undermines the idea of a neutral, rules-based approach within the agency.
More fuel was added when the report acknowledged that even if Hinman did hold direct exposure to Ether, it still wouldn’t qualify as a legal conflict of interest—an assertion that triggered sharp reactions online. Legal transparency advocates, like CryptoLaw and journalist Eleanor Terrett, slammed the logic, questioning how such financial entanglements could be deemed irrelevant when they potentially influence public policy.
The controversy has resurfaced at a time of broader change. Paul Atkins was just confirmed as the new SEC Chair, replacing Gary Gensler, and calls for reform around crypto regulation and ethics enforcement are growing louder. Although Hinman may be cleared on paper, the court of public opinion isn’t done deliberating.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/sec-clears-bill-hinman-in-ethereum-ethics-review-but-controversy-lingers/