US lawmaker calls on SEC chairman to re-evaluate stance on crypto after Ripple’s decision

Representative Richie Torres of New York has called on United States Securities and Exchange Commission (SEC) chairman Gary Gensler to reconsider the regulator’s position on crypto after a “terrible day in court”.

Gensler, in a July 18 letter to Representative Torres requested The SEC has limited its enforcement cases to “true bad actors” rather than “indiscriminately” treating most crypto assets as securities within its purview. The legislator’s letter followed a court ruling in the SEC’s case against blockchain firm Ripple, which suggested the XRP token was broadly not a security.

“Under Chair Gensler, the SEC has not issued a single rule, nor provided any clear guidance, on crypto assets,” said Representative Torres. All he has done is sent mixed messages, one after the other (sic), not only contradicting the CFTC but often contradicting himself.”

Crypto regulation enforcement had a dreadful day in court.

In light of the landmark SDNY decision in the Ripple case, @SECGov should re-evaluate its reckless regulatory assault on the crypto industry.

My letter to Chair Gensler: pic.twitter.com/Mrk63N4KhH

— Rep. Richie Torres (@RepRitchie) 18 July 2023

Rep. Torres echoed other experts in suggesting that a quick appeal of the court’s decision is unlikely, and that with a new legal basis, the SEC’s case against Coinbase could also be in jeopardy. The commission filed a lawsuit against the exchange in June for allegedly offering unregistered securities.

“(SEC) should re-evaluate its reckless regulatory assault on the crypto industry.”

Connected: Ripple Court Decision Makes Regulation ‘More Compelling and More Necessary’ – Former CFTC Chair

The US lawmaker coincidentally shares the surname with Judge Annalisa Torres in the SEC vs. Ripple case. He Referred To XRP Court Decision As ‘Torres Doctrine’ – Possibly discussing for the judge and not for himself, as he “never met any Torres who was wrong on crypto”. Representative Torres is a member of the Congressional Blockchain Caucus.

It is unclear how the SEC intends to respond to the court’s decision. Chair Gensler said on July 17 that he was “disappointed” by the impact the judge’s decision could have on retail investors, and that the commission is still considering what action to take.

magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Decision?