{"id":38032,"date":"2023-07-20T03:45:49","date_gmt":"2023-07-20T07:45:49","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/sec-urged-to-abandon-crypto-crusade-by-congressman-torres-after-ripple-legal-battle\/"},"modified":"2023-07-20T03:45:51","modified_gmt":"2023-07-20T07:45:51","slug":"sec-urged-to-abandon-crypto-crusade-by-congressman-torres-after-ripple-legal-battle","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=38032","title":{"rendered":"SEC Urged to Abandon Crypto ‘Crusade’ by Congressman Torres After Ripple Legal Battle"},"content":{"rendered":"
\n

Congressman\u00a0Ritchie Torres<\/strong>\u00a0has asked the\u00a0US Securities and Exchange Commission<\/strong>\u00a0to provide clear rules for crypto instead of \u201cindiscriminately\u201d treating the majority of crypto assets as securities under its purview.\u00a0<\/p>\n

On Tuesday, Torres\u00a0penned an open letter<\/a>\u00a0to SEC Chairman\u00a0Gary Gensler<\/strong>, expressing his discontent with the agency’s failure to issue clear guidance to the cryptocurrency industry.<\/p>\n

\n

\u201cUnder Chair Gensler, the SEC has not issued a single rule on crypto assets, nor has it given any clear guidance,” said Torres.\u00a0<\/p>\n<\/blockquote>\n

“All it has done is sent mixed messages, one after the [other], not only contradicting the CFTC but often contradicting itself.\u201d<\/p>\n

The letter came after the judge presiding over the SEC v. Ripple Labs case delivered a summary judgment ruling that\u00a0XRP is not a security\u00a0in regard to programmatic sales on digital asset exchanges.<\/p>\n

Torres applauded the ruling, asserting that the SEC’s enforcement strategy, commonly known as “regulation by enforcement,” suffered a significant blow in court.<\/p>\n

While the district court ruling is not binding outside its jurisdiction and could still be appealed, it sets a precedent challenging the SEC’s assertion that most digital assets are securities that should be registered.<\/p>\n

\u201cJudge Torres has made it crystal clear to the SEC that digital assets are not securities in the abstract and that it lacks the legal authority to regulate digital assets untethered from an actual security offering,\u201d the congressman wrote.<\/p>\n

Torres’s letter also highlighted the judge’s criticism of the SEC for failing to provide fair notice to the industry regarding the classification of digital assets as securities.\u00a0<\/p>\n

He noted that under Gensler’s leadership, the SEC has not issued any rules or clear guidance on the regulation of crypto assets.<\/p>\n

SEC Leads Government’s Crackdown on Crypto<\/h2>\n

The SEC has been at the forefront of the US government’s efforts to clamp down on the cryptocurrency industry.<\/p>\n

Last month, the SEC\u00a0sued both\u00a0Binance<\/strong>, the world’s largest cryptocurrency exchange, and\u00a0Coinbase<\/strong>, the largest US-based cryptocurrency\u00a0exchange.\u00a0<\/p>\n

The commission has also taken enforcement action against crypto exchanges Kraken\u00a0<\/strong>and\u00a0Bittrex<\/strong>, as well as crypto lending platform\u00a0Nexo<\/strong>\u00a0so far this year.\u00a0<\/p>\n

However, Torres’s letter adds to the growing disapproval of the agency’s actions.<\/p>\n

This critique follows an equally scathing assessment from Inspector General Deborah Jeffrey and Comptroller General Gene Dodaro, who called for an investigation into the SEC’s “unusual” approval of the crypto broker-dealer “Prometheum.”\u00a0<\/p>\n

Torres denounced the approval as a mere act of propaganda, designed to create the illusion of regulatory clarity while leaving other firms with no clear path to registration.<\/p>\n

Nevertheless, it remains to be seen how the SEC responds to the recent court ruling.\u00a0<\/p>\n

Speaking at an event hosted by the National Press Club in Washington DC on Monday,\u00a0Gensler said\u00a0that although he is \u201cpleased\u201d that the court ruling protects institutional investors by pushing back at the so-called fair notice argument in the Ripple case, he is disappointed on behalf of retail investors.<\/p>\n

“While disappointed on what they said about retail investors, we\u2019re still looking at it and assessing that opinion,” Gensler, who has led an aggressive crackdown on the crypto sector during his time as SEC chair, said.<\/p>\n<\/p><\/div>\n