New York Representative Ritchie Torres has urged SEC Chairman Gary Gensler to reconsider the regulator's approach to cryptocurrencies following a court ruling that showed XRP, a token from blockchain firm Ripple, is largely not considered a security. In a letter dated July 1 8, Torres requested the SEC to limit enforcement cases to "really bad actors" and avoid treating most crypto assets as securities indiscriminately. He criticized the SEC for sending mixed messages and lacking clear guidance on crypto assets during Gensler's tenure.
The court ruling in the SEC case against Ripple has raised questions about the SEC's stance on cryptocurrencies. Torres highlighted that the lack of rules and clear guidance from the SEC has created uncertainty in the crypto industry. He also suggested that with the new legal bas is established by the court's decision, the SEC's case against Coinbase, which was filed in June, might also be at risk.
Representative Torres shares the same surname as Judge Analisa Torres, who presided over the SEC v. Ripple case. He humorously referred to the court's decision as "Torresism," attributing the correctness of the ruling to the judge's name. As a member of the Congressional Blockchain Caucus, Rep. Torres is advocating for more clarity and consistency in the SEC's approach to regulating cryptocurrencies. The SEC's response to the court ruling and its potential impact on future crypto-related cases remains uncertain. Chairman Gensler expressed disappointment about the ruling's potential effect on retail investors and mentioned that the SEC is still considering possible actions.
