- John E Deaton reveals unredacted truth behind SEC and ConsenSys meetings.
- Former SEC Chairman Jay Clayton’s association with ConsenSys raises concerns.
- Lowell Ness’ memo found in Hinman’s speech on Ether adds interest.
John E Deaton, the mastermind behind Crypto Law, has taken to Twitter to unveil the unredacted truth behind the meetings between former SEC Director William Hinman and ConsenSys, a leading player in the cryptocurrency realm. According to Deaton, Hinman confessed to having had a series of 4 to 5 meetings, one of which was with Ethereum co-founder Vitalik Buterin, spanning from December 13, 2017, to June 8, 2018.
The email mentioned in Hinman’s testimony has piqued our curiosity, especially since the SEC has unknowingly shared it with EMPOWR. Additionally, Deaton has brought to light that former SEC Chairman Jay Clayton had several discussions with Hinman about the ConsenSys gatherings. These revelations are of great significance and warrant further investigation.
The revelation of Clayton’s association with the prestigious law firm Sullivan & Cromwell (S&C) holds great significance. It is worth noting that Ethereum’s Joseph Lubin engaged S&C to represent ConsenSys soon after Clayton took over as the SEC Chairman. Although there is no evidence of Clayton’s involvement in any misconduct, it does raise concerns about his active participation in ConsenSys meetings, given their significant ties with S&C.
During Hinman’s deposition, Ripple’s legal team sought clarification on whether Clayton had instructed Hinman to contact ConsenSys. Hinman stated that he could not recollect any explicit directives from Clayton. The exchange was conducted professionally, with both parties adhering to the legal protocols.
Recently, we have witnessed a peculiar trend in the career trajectories of notable figures such as FTX’s Sam Bankman-Fried and SEC Chair Gary Gensler. Interestingly, this pattern also seems to have affected former SEC Chairman Jay Clayton, who assumed his role shortly after serving as a senior partner at S&C. Notably, within two months of Clayton’s appointment, Lubin brought on board Patrick Berarducci from S&C. These observations highlight the intricate dynamics of the professional world and the potential impact of strategic career moves.
One fascinating element of this case centers around attorney Lowell Ness of Perkins Coie, whom Hinman professed to have no recollection of. Ness sent Hinman a memo and Safe Harbor proposal on March 26, 2018, and the two met just two days later. Interestingly, certain phrases from Ness’ memo were found in the initial and final versions of Hinman’s widely-discussed “personal opinion” speech, concluding that Ether was not a security.
Notably, Ness has served as the leading legal counsel for a16z in the crypto space since its inception, while Hinman presently holds a partnership position at the firm. The association between these two individuals and those who have influenced Hinman’s perspective on Ether adds layer of interest. Notably, the Safe Harbor proposal references ETH as the designated digital asset.
As the veil is lifted on these recent disclosures, the cryptocurrency community eagerly anticipates greater transparency and lucidity regarding the interplay between regulatory bodies and influential industry figures. The aspiration is for a regulatory framework that is impartial and just, fostering a level playing field for all stakeholders.
