U.S. Rep. Torres Urges SEC to Reconsider their Crypto Approach

New York Rep. Ritchie Torres has asked SEC Chair Gary Gensler to rethink their approach to cryptocurrency. This is due to a recent bad day in court.

In a letter dated July 18 to Gensler, Torres asked the SEC to focus on punishing real wrongdoers in crypto, instead of treating all crypto assets like securities (like shares). This was after a court case in which the SEC went against Ripple, a blockchain company.

Torres criticized that under Gensler, the SEC has not made clear rules on crypto assets and has sent confusing signals. These signals are not just against the Commodity Futures Trading Commission (CFTC), but they also contradict the SEC itself.

Following the court's decision on the Ripple case, experts think an appeal is unlikely. This also puts the SEC's case against Coinbase in doubt. In June, the SEC sued Coinbase, an exchange, for supposedly offering unregistered securities.

Torres called the XRP court decision the "Torres Doctrine", probably named after the judge, Analisa Torres, not him. He said, "I've never met a Torres who was wrong on crypto." Torres is part of the Congressional Blockchain Caucus, a group of lawmakers interested in blockchain technology.

We don't know yet how the SEC will react to the court decision. Gensler said on July 17 that he was "disappointed" in the possible effects of the judge's decision on everyday investors. The SEC is still thinking about its next move.