According to an update making rounds, a recent Office of Inspector General (OIG) investigation has uncovered potential conflicts of interest within the U.S. Securities and Exchange Commission (SEC) regarding cryptocurrency regulation.
Former SEC Chair Gary Gensler reportedly withheld critical findings on crypto bias before his departure on January 15, 2025. This development introduces uncertainty into the SEC’s appeal against the Programmatic Sales ruling in the Ripple case, potentially influencing the legal standing of XRP.
Also Read: Big News: SEC Drops Major Crypto Probe Without Penalty, Creates Excitement Across XRP Community
OIG Investigation Could Impact SEC’s Legal Strategy
The OIG findings may determine the SEC’s next steps in the case against Ripple. The investigation followed whistleblower complaints from Empower Oversight (EO), which alleged former SEC officials had conflicts of interest in handling crypto regulations.
The controversy circles around the former SEC Director of Corporation Finance, Bill Hinman, whose actions raised concerns about selective crypto regulations.
In 2018, Hinman stated in his speech that Bitcoin (BTC) and Ethereum (ETH) were not securities, raising concerns about bias. EO claims Hinman had financial ties to Simpson Thacher while at the SEC. The law firm is linked to the Enterprise Ethereum Alliance, which actively promotes Ethereum’s growth.
🚨 BREAKING XRP NEWS! 🚨
The SEC vs. Ripple case just took a shocking new twist—potential conflicts of interest are coming to light! 👀🔥
Are we finally seeing the truth unfold? Details below. ⬇️
SUMMARY: 👇🏻
A recent Office of Inspector General (OIG) investigation has…
— All Things XRP (@XRP_investing) February 24, 2025
Despite warnings from the SEC’s Ethics Division, Hinman allegedly continued engaging with Simpson Thacher representatives. Court documents revealed multiple SEC attempts to block the release of internal communications related to Hinman’s speech.
If the OIG confirms conflicts of interest, the SEC may face pressure to withdraw its Ripple appeal and ease regulatory enforcement against other crypto firms. EO and journalist Eleanor Terrett have filed Freedom of Information Act (FOIA) requests for the OIG report.
The SEC’s lack of response led EO to file a lawsuit against the agency for failing to release the findings.
XRP Price Outlook Hinges on Key Developments
Uncertainty around the SEC’s appeal, the OIG investigation, and possible XRP-spot exchange-traded funds (ETFs) developments are shaping XRP’s price trends.
XRP experienced a steep decline today, February 25, dropping by a notable 10% to trade as low as $2.21. The broader crypto market also dipped significantly, dropping to $2.7 trillion after losing 7% in the last 24 hours.
If the SEC drops its appeal, XRP could surge beyond its all-time high of $3.5505. A prolonged legal battle may keep it below $1.50. Approval of an XRP-spot ETF could drive institutional investment, potentially pushing prices toward $5.
Conclusion
The SEC’s silence on the OIG findings has fueled speculation about its next move in the Ripple case. If the report confirms conflicts of interest, it could weaken the agency’s position and increase calls to drop the appeal.
XRP investors are monitoring legal developments and ETF prospects as key indicators of future price movements. With the SEC under scrutiny, the coming weeks could be critical for the regulatory and market landscape of XRP.
Also Read: Here is Why Ripple (XRP) Crashed Today
