New York Rep. Ritchie Torres has referred to as on United States Securities and Change Fee (SEC) Chair Gary Gensler to rethink the regulator’s place on crypto following a “dreadful day in court docket.”
In a July 18 letter to Gensler, Torres requested the SEC restrict its enforcement circumstances to “bonafide unhealthy actors” quite than “indiscriminately” treating nearly all of crypto belongings as securities below its purview. The lawmaker’s letter adopted a court docket ruling within the SEC’s case in opposition to blockchain agency Ripple that recommended that the XRP (XRP) token was largely not a safety.
“Beneath Chair Gensler, the SEC has not issued a single rule on crypto belongings, nor has it given any clear steerage,” mentioned Torres. “All it has achieved is distributed blended messages, one after the [other], not solely contradicting the CFTC however typically contradicting itself.”
Crypto regulation by enforcement had a dreadful day in court docket.
In gentle of the SDNY’s landmark resolution within the Ripple case, @SECGov should reassess its reckless regulatory assault on the crypto business.
My letter to Chair Gensler: pic.twitter.com/Mrk63N4KhH
— Rep. Ritchie Torres (@RepRitchie) July 18, 2023
Torres echoed different specialists in suggesting a fast attraction to the court docket resolution was unlikely, and with a brand new authorized basis, the SEC’s case in opposition to Coinbase may be in danger. The fee filed a lawsuit in opposition to the alternate in June for allegedly providing unregistered securities.
“[The SEC] should reassess its reckless regulatory assault on the crypto business.”
The U.S. lawmaker coincidentally shares a surname with the choose within the SEC v. Ripple case, Decide Analisa Torres. He referred to the XRP court docket ruling because the “Torres Doctrine” — possible referring to the choose and never himself, as he “by no means met a Torres who was mistaken on crypto.” Rep. Torres is a member of the Congressional Blockchain Caucus.
It’s unclear how the SEC intends to answer the court docket ruling. Gensler mentioned on July 17 that he was “disillusioned” within the impression the choose’s resolution may have on retail traders, and the fee was nonetheless contemplating what, if any, actions it’d take.
Journal: Crypto regulation: Does SEC Chair Gary Gensler have the ultimate say?