Empower Oversight sues SEC over delayed crypto report release
Empower Oversight, a nonprofit watchdog, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) to obtain a long-overdue report on the agency’s handling of cryptocurrency-related matters.
The SEC Office of Inspector General (OIG) reportedly completed the report over a year ago, but the agency has yet to release it or provide related documents, despite multiple Freedom of Information Act (FOIA) requests.
The February 4 lawsuit seeks the release of the report, which allegedly addresses ethical conflicts and selective enforcement practices within the SEC.
One key focus is former SEC official William Hinman, who has faced allegations of conflict of interest.
Hinman, previously the Director of the Division of Corporation Finance, is accused of receiving payments from his former law firm while influencing regulatory decisions on cryptocurrencies.
Empower Oversight’s president, Tristan Leavitt, expressed frustration at the SEC’s lack of transparency.
“The SEC’s silent treatment is old and tired, and its refusal to release these records is, quite frankly, suspicious,” Leavitt said.
He emphasised that releasing the documents could help rebuild trust and hold officials accountable for their actions.
The SEC has been under fire for its inconsistent approach to cryptocurrency regulation.
Critics argue that it unfairly targets specific companies while ignoring others.
Former SEC Chair Gary Gensler also faced criticism for pursuing aggressive enforcement actions against major crypto firms such as Coinbase and Ripple (CRYPTO:XRP).
Empower Oversight has been pursuing transparency from the SEC since August 2021.
The organisation initially filed FOIA requests seeking communications between SEC officials and external entities.
Over the years, it has filed multiple lawsuits to compel the release of records, including cases in May 2023 and March 2024.
In addition to Hinman’s case, Empower Oversight has sought information about former SEC Chairman Jay Clayton’s role in digital asset regulation.
Despite repeated efforts, the SEC has delayed responses, prompting this latest legal action.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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