Torres claims SEC should focus on fighting against "bonafide bad actors."
Congressman Ritchie Torres urged Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), to revise the regulator's approach to cryptocurrency, particularly in light of a recent courtroom setback.
In a letter sent on July 18th, New York representative Torres asked Gensler to focus the SEC's enforcement actions on "bonafide bad actors." He also advised against categorizing most digital assets as securities within the SEC's jurisdiction.
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Torres' statement came shortly after a court made a decision in Ripple vs. SEC case, which indicated that the firm's XRP token does not predominantly constitute security.
In his letter, addressed to Gary Gensler, Congressman Ritchie Torres noted:
Under Chair Gensler, the SEC has not issued a single rule on crypto assets, nor has it given any clear guidance. All it has done is sent mixed messages, one after the <other>, not only contradicting the CFTC but often contradicting itself.
Taking into account expert opinions, Torres pointed out that a speedy appeal to the court decision was improbable. With this fresh legal perspective, the SEC's case against cryptocurrency exchange Coinbase might also be in jeopardy. In June, the SEC sued Coinbase, accusing it of offering unregistered securities.
The Congressman stated that the SEC should reconsider its regulatory attack on the cryptocurrency industry.
<The SEC> must reassess its reckless regulatory assault on the crypto industry.
It is uncertain how the SEC will respond to the court ruling. On July 17th, Gensler expressed disappointment regarding the potential effects of the judge's decision on retail investors. The commission is currently deliberating on possible next steps in response to the ruling.
This legislative move to reshape the SEC's stance on crypto is a timely reflection of the dynamic relationship between cryptocurrency and traditional finance. It's a reminder that the digital assets' legal and regulatory landscapes are still maturing.
