U.S. Congressman Ritchie Torres recently made a bold petition to the SEC Chairman Gary Gensler concerning the regulation of cryptocurrencies. Torres, demonstrating his supportive stance towards digital assets, urged Gensler to rethink the agency’s aggressive approach towards the burgeoning crypto industry.
This comes in the wake of a significant court verdict delivered by New York Southern District Judge Analisa Torres. The judge declared that while cryptocurrencies are not inherently securities, they can be packaged within investment contracts that fall under the scope of the Howey Test.
Termed by the congressman as a ‘landmark legal opinion’, Judge Torres’s ruling was hailed for discarding the SEC’s overreach in crypto regulation, which he described as “sloppy” use of the Howey Test. Congressman Torres even coined the ruling as the ‘Torres Doctrine’, suggesting it should be a guideline for the SEC in its future addressments concerning cryptocurrencies.
He further criticized the SEC for deficiency in offering satisfactory reporting, clear standards or consistent guidance to the fast-rising crypto space. Instead, he accused the agency of resorting to politically-planned enforcement actions.
Torres encouraged the securities regulator to utilize its resources towards fighting fraud, market exploitation and misuse of investors’ funds rather than seeking to govern non-security digital assets. In wrapping up, the congressman expressed hope that the significant court verdict would serve as a wake-up call for the SEC, pushing it to reassess its aggressive stance on cryptocurrencies.