In the midst of the ongoing legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC), fresh allegations of conflicts of interest have cast a shadow of suspicion over the regulatory agency. These allegations have come to light following a series of controversial revelations, leading to a renewed investigation into the SEC’s conduct during the Ripple lawsuit.

These revelations revolve around two senior officials at the SEC who played key roles in the XRP lawsuit. Interestingly, both of these officials departed from the commission shortly after the SEC initiated legal action against Ripple.

One of the officials in question is Marc Berger, who held the position of Acting Enforcement Director at the SEC when the enforcement action against Ripple was initiated. In December 2022, Berger left the SEC and promptly joined Simpson Thacher, where he currently serves as the law firm’s global co-head of Government and Internal Investigations. Prior to his role at Simpson Thacher, Berger also served as global co-head for Ropes & Gray LLP’s Securities and Enforcement Practice.

Similarly, Dalia Blass, another SEC veteran who was involved in the Division of Investment Management and Investment Management Policy, left the commission just a few months ago. She has since become a partner at Sullivan & Cromwell LLP, a law firm where former SEC Chair Jay Clayton also holds the position of Senior Policy Advisor.

The departures of these high-ranking SEC officials have raised concerns about potential conflicts of interest within the Commission. These concerns are particularly significant given the SEC’s ongoing, years-long legal battle with Ripple. Critics argue that these circumstances have further fueled suspicions of bias within the SEC, especially regarding its enforcement actions against prominent players in the crypto industry.

Notably, the SEC recently targeted several major cryptocurrency exchanges, including Kraken, Binance, and Coinbase, with a range of charges, including violations of securities laws. Binance, in particular, faced allegations of securities rule violations, misleading investors and regulators, failure to comply with Know-Your-Customer (KYC) rules, and mishandling of customer funds.

The career trajectories of Berger and Blass, who had prior connections to Wall Street law firms before joining the SEC, have intensified concerns that the SEC may be directing its legal actions disproportionately toward the cryptocurrency sector while showing leniency to Wall Street giants.

Even after a ruling by Judge Analisa Torres on July 13th, which concluded that XRP is not a security, the SEC has persisted in pursuing the case, expressing dissatisfaction with the outcome. This unwavering stance has prompted speculation among industry observers about the SEC’s true objectives in the lawsuit.

In the context of the Ripple XRP lawsuit, there have been additional allegations of conflicts of interest raised by industry insiders. Last year, Empower Oversight, a financial watchdog, claimed to have obtained documents under the Freedom of Information Act (FOIA) that contained a statement made by former SEC Director of Corporate Finance William Hinman regarding what qualifies as securities.

In this statement, Hinman reportedly asserted that Ethereum (ETH) and its transactions should not be considered securities. This statement has raised questions about potential conflicts of interest and biases within the SEC, particularly in light of the ongoing legal ramifications faced by Ripple Labs and XRP.

These developments underscore the complexity and contentious nature of the legal landscape surrounding cryptocurrencies and the regulatory environment in which they operate. As the Ripple lawsuit continues to unfold, it remains a focal point for scrutiny, debate, and speculation within the crypto community and beyond.