The SEC’s Approach to Regulating Crypto Industry Must be Investigated, Says US Congressman
US Congressman Ritchie Torres has criticized the US Securities and Exchange Commission (SEC) for its “haphazard and heavy-handed approach” to regulating the crypto industry. Torres compared the SEC to an overzealous traffic cop arbitrarily ticketing drivers while keeping the speed limit a secret. He called for an investigation into the SEC’s failure to create a rigorous process for registering digital assets platforms and its granting of a special purpose broker-dealer license to Prometheum, a controversial entity accused of having compromising relations with China.
Main Points:
- Torres criticizes the SEC for its enforcement-based approach to regulation instead of providing rules or guidance.
- He calls for an investigation into the SEC’s failure to create a workable process for registering real-world digital assets platforms.
- Torres also questions the SEC’s decision to grant a special purpose broker-dealer license to Prometheum, a trading platform accused of having compromising relations with China.
- SEC regulation lacks clarity, according to Torres, who argues that the SEC refuses to bring clarity to the application of securities law to digital assets.
- The call for an investigation comes as the SEC suffers a partial setback in its legal action against Ripple Labs Inc., with a court ruling that XRP is not a security when sold to the public.
Hot Take:
The criticism of the SEC’s approach to regulating the crypto industry highlights the need for clear and transparent guidelines. The investigation called for by Congressman Torres could lead to a more informed and effective regulatory framework that fosters innovation while protecting investors. It also raises questions about the SEC’s decision-making process in granting licenses to controversial entities. Overall, this highlights the ongoing challenges of regulating the rapidly evolving crypto industry.
By
By
By
