US Congressman Ritchie Torres has taken a stand against the Securities and Exchange Commission’s (SEC) current approach to regulating cryptocurrencies.
In a letter addressed to SEC Chairman Gary Gensler, Congressman Torres expressed strong criticism, calling the agency’s actions “stupid” and likening it to a “crusade” against the crypto industry. His letter comes in the wake of a significant court ruling that has implications for the future of crypto regulation.
Congresswoman Torres highlighted a recent ruling by New York Southern District Judge Analisa Torres, which established that cryptocurrencies are not considered securities in and of themselves.
Instead, they can be sold as part of investment contracts governed by the well-known Howey Test. This decision was termed the “Torres Doctrine” by Congressman Torres, as he believes it should serve as a guiding principle for the SEC’s future actions and bring legal clarity to the crypto industry.
The Congressman pointed out that Judge Torres’ ruling was a clear rejection of what he called “regulatory excesses” and “sloppy” practices by the SEC regarding the Howey Test.
He criticized the agency for not providing fair reporting, consistent guidance, or clear rules for the crypto industry. Instead, he accused the SEC of relying on “politically timed enforcement actions.”
Congressman Torres urged the SEC to shift its priorities away from attempting to regulate digital non-security assets and instead concentrate on combating fraud, market manipulation, and the misuse of client funds.
He emphasized that the court’s decision should serve as a wake-up call for the SEC to reassess its regulatory approach and focus on tackling real issues within the industry.
In his letter, the Congressman expressed hope that the SEC will take the court’s decision as a signal to reevaluate its “regulatory attack” on crypto assets.
He argued that the agency’s efforts should be channeled into addressing genuine concerns rather than creating unnecessary obstacles for the growing crypto space.