U.S. Rep. Ritchie Torres Urges SEC to Target Bad Actors in Crypto Sector
U.S. Rep. Ritchie Torres has called on the Securities and Exchange Commission (SEC) to refocus its efforts on going after bad actors in the cryptocurrency sector. This comes after a judge’s split decision in an ongoing dispute between Ripple Labs and the regulator. Torres, a member of the House Financial Services Committee, wants the SEC to concentrate on fraud, market manipulation, and the misappropriation of customer funds.
Key Points:
- Torres hopes the SEC will reassess its regulatory approach to crypto assets following the ruling.
- The judge ruled that XRP was not a security when sold on the secondary market, but considered it a security when sold to institutional investors.
- Torres believes the decision could have future implications and constrain the SEC’s ability to make up laws.
- SEC Chair Gary Gensler expressed disappointment over the treatment of retail investors in the judge’s decision.
- Gensler has not yet determined if more crypto-specific rules will be drafted.
U.S. Rep. Ritchie Torres wants the SEC to focus its enforcement efforts on the real wrongdoers in the crypto sector, such as those involved in fraud and market manipulation. He believes that the recent court ruling on Ripple Labs’ dispute with the SEC should prompt the agency to reassess its regulatory approach. While the ruling provided some relief for the crypto industry, Torres suggests that it could also have implications for future legal cases. It remains to be seen how the SEC will respond to Torres’ call and whether it will draft more specific rules for the crypto sector.
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