In a letter addressed to Securities and Exchange Commission (SEC) Chair Gary Gensler, U.S. lawmaker Ritchie Torres has called for a reconsideration of the regulatory approach towards the cryptocurrency industry. The plea from Torres comes in light of Judge Analisa Torres’s significant ruling on June 13, bringing some much-needed legal clarity to the crypto world. While the ruling stated that the programmatic sales of XRP do not fall under the category of securities offerings, it also highlighted that XRP sales to institutional buyers do meet the threshold.
Rep. Torres goes on to emphasize the importance of Judge Torres’s ruling, suggesting that it be referred to as the “Torres Doctrine.” This landmark decision has made it clear that digital assets cannot be automatically classified as securities without an actual security offering, a fact that the SEC must acknowledge and address.
In his letter, Torres does not hold back in expressing his disappointment with the SEC’s lack of clear guidance and fair notice to the crypto industry. He specifically points out how the Commission’s case against Coinbase has now lost its legal foundation in light of the new ruling. The lawmaker accuses the SEC of relying on enforcement actions rather than implementing clear rules or guidance, leading to contradictions, confusion, and arbitrary decisions. Such an approach goes directly against the principle of fair notice that the industry deserves.
A Shift in Enforcement Focus
Rep. Torres makes a strong case for the SEC to redirect its enforcement efforts towards the bad actors within the cryptocurrency industry. With the legal clarity provided by Judge Torres’s ruling, he argues that the commission should reassess its relentless attack on the industry as a whole. By concentrating on the real wrongdoers and providing clear guidelines, the SEC can foster a more favorable environment for the crypto industry to thrive.
To summarize, U.S. lawmaker Ritchie Torres has urged the SEC to reconsider its regulatory approach in the cryptocurrency industry following a groundbreaking ruling by Judge Analisa Torres. The ruling clarified that the programmatic sales of XRP are not classified as securities offerings, while XRP sales to institutional buyers meet the threshold. Rep. Torres highlights the significance of this ruling in bringing much-needed legal clarity to the industry and criticizes the SEC for its lack of clear guidance and fair notice. He calls on the commission to refocus its efforts on addressing bad actors within the crypto industry and reassess its overall stance. By doing so, the SEC can cultivate an environment that promotes innovation and growth while protecting investors. It is now up to the SEC to heed this call and embrace a more balanced and informed regulatory approach in the realm of cryptocurrencies.