Nonprofit Suing SEC Over Conflicts of Interest Amid Focus on Corporate Wrongdoing

Empower Oversight Files Lawsuit Against SEC

Empower Oversight, a nonprofit organization dedicated to enhancing independent governmental oversight, has filed a lawsuit against the United States Securities and Exchange Commission (SEC). The lawsuit alleges that the SEC failed to comply with a Freedom of Information Act (FOIA) request related to cryptocurrency conflict of interests at the agency.

Focus on William Hinman

The lawsuit focuses on uncovering information about William Hinman, the former Director of the Division of Corporate Finance at the SEC. Hinman’s actions have raised concerns about the integrity of his decisions at the SEC, as it was revealed that he had financial interests that may have conflicted with his role.

Allegations of Ethics Violations

Empower Oversight alleges that Hinman violated the SEC’s ethics guidance by receiving payments from his former employer, Simpson Thacher, while serving at the federal agency. Additionally, Hinman’s public support for Ether in a speech in 2018 raised questions, especially as Simpson Thacher was involved with the Enterprise Ethereum Alliance at the time.

Push for Transparency

The lawsuit filed on March 15 is part of Empower Oversight’s ongoing efforts to promote transparency at the SEC. The organization has been seeking more information about potential conflicts of interest within the agency and has taken legal action after facing challenges in obtaining relevant documents.

Call for Accountability

Empower Oversight is calling for accountability and transparency in how the SEC handles conflicts of interest. The organization believes that the public has a right to know about any ethical violations by public officials and expects the SEC to address these concerns promptly.