US Congressman Questions SEC’s Actions: “I’m Calling for an Investigation”

In a recent development, Congressman Ritchie Torres has made a strong case for independent investigations into the operations of the U.S. Securities Exchange Commission (SEC), citing concerns about the regulatory body’s handling of the cryptocurrency industry.

Torres, known for his vocal stance on financial matters, criticized what he perceives as a disorganized and overbearing approach by the SEC toward the rapidly expanding world of cryptocurrencies.

Here’s what he said and why.

Congressman Calls for Action

One of the key points addressed by Congressman Torres in his letters pertains to the SEC’s contentious decision to grant a special purpose broker-dealer (SPBD) license to Prometheum. This decision has raised significant concerns and drawn sharp criticism from Torres.

Surprisingly, despite its title, Prometheum’s trading platform does not actually facilitate the trading of digital assets. Torres has labeled this platform a “Potemkin platform,” suggesting that it serves more as a symbolic discussion point for critics of the crypto industry rather than a genuine trading platform for cryptocurrency users.

Is Regulatory Clarity a Mirage?

Congressman Torres highlighted the lack of clear regulation and guidance within the cryptocurrency industry, an issue he believes is of paramount importance for compliance. He argued that the SEC’s communication strategy has been ineffective, as it relies heavily on enforcement rather than providing explicit rules or guidance. Consequently, industry participants find themselves in a state of uncertainty, unsure about the rules they should follow when dealing with digital assets.

Did Politics Play a Part..?

Furthermore, Torres expressed concerns over what he perceives as a politically motivated decision by SEC Chair Gary Gensler. According to Torres, Gensler’s move to license Prometheum represents an unwarranted politicization of the registration process, an unusual level of involvement in contrast to the SEC’s historical operations. The Congressman believes that this decision warrants thorough scrutiny to ensure transparency and fairness within the SEC.

Reign In the SEC

In light of these concerns, Congressman Torres has urgently called for an independent review of the SEC’s strategies regarding digital assets. He specifically emphasized the need to examine the SEC’s failure to establish a robust and feasible process for the registration of legitimate digital asset platforms. Moreover, Torres urged a probe into what he described as an unusual backroom deal brokered by the SEC with Prometheum.

Interestingly, this call for an inquiry into the SEC’s dealings follows Ripple’s recent victory over the SEC in a long-standing lawsuit that began in 2020.

What are your thoughts on Congressman Torres’ bold stance? Is it necessary for someone to stop the SEC?