Congressman Ritchie Torres, a New York Democrat, has called upon the US Securities and Exchange Commission (SEC) to carry out two individual investigations into the managing of digital assets. This request stems from concerns of an inconsistent and hostile approach from the SEC in handling digital assets.
Torres’ first request comes as a response to the SEC granting a special-purpose broker-dealer (SPBD) license to Prometheum. This digital asset trading platform is under scrutiny as it surprisingly does not engage in digital asset trading. The Congressman found the circumstances surrounding this licensing decision peculiar and questioned the rationality of licensing a platform perceived as unreliable.
In his second letter, Torres indicated his exasperation with the SEC’s delay in establishing a solid, workable process for registering real-world digital asset platforms. He criticized the SEC’s inertia in paving a meaningful way for the registration of actively operating platforms.
A noteworthy concern in Torres’ argument was the alleged politicization of the registration process by SEC Chair Gary Gensler. The Congressman dubbed the SEC as an “overzealous traffic cop” ambiguously slamming speeding fines while neglecting to define a clear speed limit.
Torres’ letters were addressed to the Inspector Generals of the SEC, Deborah Jeffrey, and the Government Accountability Office, Gene Dodaro, as a call to independently investigate the SEC’s actions and decision-making. The Congressman condemned the SEC’s strategy of “regulating through sanctions” and highlighted the necessity for a more effective and transparent regulatory approach.