US Congressman Ritchie Torres has sent a letter to SEC Chairman Gary Gensler, expressing concerns over the regulatory approach towards cryptocurrencies and urging the SEC to reconsider its stance.
In the letter, Congressman Torres referred to a recent landmark court ruling by New York Southern District Judge Analisa Torres, which stated that cryptocurrencies are not securities by themselves but can be sold as part of investment contracts under the Howey Test.
Describing the court ruling as the “Torres Doctrine,” Congressman Torres emphasized that it rejects the regulatory excesses and sloppy practices associated with the SEC’s Howey Test.
He called on the SEC to align its actions with the court’s decision and provide legal clarity to the crypto industry.
Congressman Torres criticized the SEC for its lack of fair reporting, clear rules, and consistent guidance in the cryptocurrency space.
He expressed disappointment in the agency’s reliance on politically timed enforcement actions rather than focusing on combatting fraud, market manipulation, and the misuse of client funds.
The Congressman emphasized that the SEC’s regulatory efforts should be directed towards addressing genuine issues within the crypto industry, rather than attempting to regulate digital non-security assets.
He expressed his hope that the SEC would take the court’s decision as an opportunity to reevaluate its regulatory approach and put an end to what he referred to as a “regulatory attack” on crypto assets.
Congressman Torres concluded the letter by calling for a more balanced and informed approach, urging the SEC to work towards fostering innovation and protecting investors without stifling the potential of cryptocurrencies.
He expressed his belief that the court’s decision would serve as a wake-up call for the SEC and encourage a more thoughtful and fair approach to regulating the crypto industry.
