US Lawmaker Urges SEC Chair to Reconsider Crypto Position Following Ripple Ruling
New York Representative Ritchie Torres has called on the Chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, to reassess the regulator’s stance on cryptocurrencies. The request comes after what Torres describes as a dreadful day in court for the SEC.
In a letter to Gensler on July 18, Torres asked the SEC to focus its enforcement cases on bonafide bad actors rather than treating the majority of crypto assets as securities. The letter follows a recent court ruling in the SEC’s case against blockchain company Ripple. The ruling suggested that the XRP token, involved in the case, was not a security.
“Under Chair Gensler, the SEC has not issued a single rule on crypto assets, nor has it given any clear guidance,” Torres stated. “All it has done is sent mixed messages, one after the another, not only contradicting the CFTC but often contradicting itself.”
Torres believes that a quick appeal to the recent court ruling is unlikely and that the SEC’s case against Coinbase, the popular cryptocurrency exchange, could also be in jeopardy with this new legal precedent. The SEC had filed a lawsuit against Coinbase in June, accusing the exchange of offering unregistered securities.
Torres called on the SEC to reassess its regulatory approach to the crypto industry, stating that it should reconsider its reckless regulatory assault.
Coincidentally, Representative Ritchie Torres shares his surname with the judge presiding over the SEC v. Ripple case, Judge Analisa Torres. In reference to the court ruling on XRP, Torres called it the ‘Torres Doctrine,’ although it is likely he was referring to the judge and not himself, as he jokingly mentioned, I’ve never met a Torres who was wrong on crypto. Torres is a member of the Congressional Blockchain Caucus.
It remains unclear how the SEC will respond to the court ruling. Chairman Gensler expressed disappointment on July 17 regarding the potential impact on retail investors, but the commission is still considering its course of action.
