Empower Oversight Sues SEC Over Report Disclosure

According to Odaily, Empower Oversight, a U.S. government watchdog, has filed a lawsuit against the Securities and Exchange Commission (SEC) for failing to release a report on internal ethical conflicts and selective enforcement within the agency. The lawsuit claims that the SEC's Office of Inspector General completed the report over a year ago, yet the agency has not disclosed it despite multiple requests under the Freedom of Information Act (FOIA). The legal action seeks to compel the SEC to reveal findings related to an investigation involving former SEC Director of Corporation Finance, William Hinman. The investigation focuses on potential conflicts of interest stemming from Hinman's ties to his former law firm, Simpson Thacher, which has financial interests in promoting Ethereum. Empower Oversight has been advocating for transparency from the SEC since August 2021, filing several FOIA requests and lawsuits to obtain documents related to the agency's communications with cryptocurrency entities. The watchdog argues that the SEC's delays indicate a pattern of evading accountability in its enforcement actions.