December 9, 2023

Rep. Ritchie Torres has become the latest U.S. lawmaker to criticize the SEC and its chairman, Gary Gensler, for their stance on cryptocurrencies.

New York Rep. Ritchie Torres urged the U.S. Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, to “have a terrible day in court for cryptocurrency enforcement regulation.”

Rep. Torres is a member of the Congressional Blockchain Caucus.

SEC Should Limit Enforcement Cases to ‘Really Bad Actors’

in a letter On July 18, Torres asked Chairman Gensler to ask the agency to limit enforcement cases to “really bad actors” and not “indiscriminately” treat most crypto assets as securities under its supervision. deal with.

Following the SEC’s landmark court ruling in the Ripple Labs case, Torres criticized the SEC and called for a “reckless regulatory attack on the crypto industry.” Ripple’s sale of its $XRP token on a public exchange was an offer of securities, causing numerous exchanges to delist the token and its value to plummet, the regulator said.

However, Judge Analise Torres’ ruling stated that $XRP tokens “need not be prima facie securities.”

Rep. Torres said in the letter:

“I am writing to ask whether the SEC intends to accept the Commission’s foolish action against crypto assets based on the latest decision of Southern District of New York Judge Analisa Torres.”

He added:

“In a landmark legal opinion, Judge Torres decisively rejected the regulatory overreach of the SEC, which has consistently declared all cryptoassets, except Bitcoin, to be securities indiscriminately.”

The MP concluded:

It is my hope that the SEC will find itself punished by court decisions, thereby focusing the Commission’s enforcement efforts where it belongs: against truly bad actors who commit serious violations such as fraud, market manipulation, and misappropriation of client funds. actors.

SEC Fails to Provide Clear Guidance for the Cryptocurrency Industry

Rep. Torres, who happens to have the same surname as the judge presiding over the SEC case against Ripple, said:

“Under Chairman Gensler, the SEC has not issued a single rule on crypto assets, nor has it given any clear guidance.”

Adding, “all it did was send one mixed message after another, not only contradicting the CFTC, but often contradicting itself.”

Torres and other industry experts believe that the SEC’s immediate appeal seems likely Not too possible. The precedent set by the $XRP ruling will jeopardize the agency’s lawsuit against Coinbase.

Rep. Torres suggested:

The (SEC) must reevaluate its reckless regulatory attack on the crypto industry.

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.