The SEC’s Handling of Digital Assets Under Investigation
The U.S. Securities Exchange Commission (SEC) is facing two separate investigations over its handling of digital assets. Representative Ritchie Torres has requested these investigations, expressing concern about the SEC’s decision to grant Prometheum Ember ATS a special purpose broker-dealer (SPBD) license. Here are the key points:
- Torres questions whether the SPBD license was a political move by the SEC rather than a genuine effort to integrate digital assets into regulations.
- He calls the decision a “dubious decision” by Chair Gary Gensler to politicize the registration process.
- Torres also calls for an investigation into the SEC’s failure to create a rigorous process for registering real-world digital asset platforms.
- The issuance of Prometheum’s license has sparked controversy, with arguments about the need for new regulations.
- Torres plans to send the investigation requests to the SEC’s Office of the Inspector General and to the Government Accountability Office.
Despite allegations of impropriety, no hard evidence has been produced. The industry awaits answers and urges for an investigation to uncover any impropriety or confirm its absence. Torres criticizes the SEC’s approach, likening it to “an overzealous traffic agent” and stating that “regulation by enforcement is no way to regulate.”
Hot Take: The investigations into the SEC’s handling of digital assets highlight the need for transparent and fair regulations in the cryptocurrency industry. The outcome will have significant implications for the industry’s future.
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