SEC Faces Pressure To Change Crypto Regulation After Ripple Ruling


Rep. Ritchie Torres, a member of the Congressional Blockchain Caucus, has sent a letter to the SEC chair, urging the agency to reconsider its regulatory stance on crypto assets.

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U.S. Rep. Ritchie Torres (D-N.Y.) has urged the Securities and Exchange Commission (SEC) to target bad actors in the cryptocurrency sector, in light of a recent split decision by a judge in the ongoing Ripple Labs vs. SEC dispute.

Rep. Ritchie Torres (D-N.Y.), a member of the House Financial Services Committee, sent a letter to SEC Chair Gary Gensler on Tuesday, expressing anticipation for the agency’s plans to “reassess its regulatory assault on crypto assets” after the recent ruling. The House Financial Services Committee is responsible for overseeing the SEC.

Torres expressed his hope that the SEC would be humbled by the court’s decision and focus its enforcement efforts on genuine wrongdoers, such as those involved in fraud, market manipulation, and misappropriation of customer funds.

Last week, advocates for the crypto industry rejoiced when a New York judge ruled that XRP was not considered a security in “blind bid” sales on the secondary market. However, Judge Analisa Torres agreed with the SEC’s stance, affirming that the token qualified as a security when sold to institutional investors.

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Torres, a member of the Congressional Blockchain Caucus, highlighted that the recent decision could have significant implications. He believes that the persuasive authority of the “Torres Doctrine” in future legal cases will likely limit the SEC’s ability to create ad hoc regulations.

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The SEC declined to comment on the matter. Gensler expressed his disappointment with the treatment of retail investors in the judge’s ruling.

Gensler stated his disappointment with the judge’s remarks concerning retail investors during a National Press Club luncheon on Monday while discussing artificial intelligence. He mentioned that they are still evaluating the opinion.

On Monday, Gensler informed Yahoo Finance that it’s “too early” to determine if the SEC will create additional crypto-specific regulations after the recent decision. Meanwhile, Torres did not impose a deadline for a response in his letter.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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