The United States’ independent agency Securities and Exchange Commission (SEC) has announced that its Director of the Division of Corporation Finance William H. Hinman intends to leave the agency. According to the SEC, he has planned to leave the agency by the end of the year. Hinman is the regulator who said that Ethereum (ETH) is not a security.
Hinman joined the US SEC in May 2017 and has been holding his position as the agency’s Director Division of Corporation Finance. Mainly, throughout his career, his focus was centered on making the offering process modern and enhancing the protection of investors. As the SEC announcement post reads:
“Throughout his tenure, Mr. Hinman remained focused on modernizing the offering process, including through addressing regulatory impediments in the registered offering process, while maintaining or enhancing investor protections.”
One of his key works includes developing the Strategic Hub for Innovation and Financial Technology (FinHUB) for SEC. FinHUB was created in an attempt to address the issues that arose in the digital assets industry due to rapid innovation. The aim of this program was to promote fin-tech developments as well as provide advice on regulatory matters regarding cryptocurrencies. In the form of FinHUB, he provided cryptocurrency firms a framework for analyzing whether a cryptocurrency is a security or not.
Hinman got fame in the cryptocurrency industry due to his popular speech “Digital Asset Transactions: When Howey Met Gary” which he made in the year 2018. In that speech, He said that the second-ranked digital currency Ethereum (ETH) cannot be a security. According to him, the structure of Ethereum was “sufficiently decentralized” therefore he did not regard it as a security. He said, “based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions.”
In an official statement, Hinman said that it was an honor for him to work for SEC under the leadership of the agency’s Chairman Jay Clayton. He also praised the staff and team of Division of Corporation Finance with whom he worked throughout his career while calling them “dedicated and talented”.
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