US Lawmaker Urges SEC Chair to Rethink Crypto Following Ripple Ruling

Ritchie Torres Calls on SEC to Reconsider Crypto Regulations

New York Rep. Ritchie Torres has urged United States Securities and Exchange Commission (SEC) Chair Gary Gensler to rethink the regulator’s stance on crypto following a “dreadful day in court.”

In a July 18 letter to Gensler, Torres requested the SEC to limit its enforcement actions to “bonafide bad actors” instead of “indiscriminately” treating the majority of crypto assets, such as NEO crypto, LOOM crypto, POLY crypto, MATH crypto, MASK crypto, ORCA crypto, NEW crypto, MINA crypto and PEPE crypto, as securities under its purview. The lawmaker’s letter followed a court ruling in the SEC’s case against blockchain firm Ripple that suggested that the XRP (XRP) token was largely not a security.

“Under Chair Gensler, the SEC has not issued a single rule on crypto assets, nor has it given any clear guidance,” said Torres. “All it has done is sent mixed messages, one after the [other], not only contradicting the CFTC but often contradicting itself.”

Torres echoed other experts in suggesting a quick appeal to the court decision was unlikely, and with a new legal foundation, the SEC’s case against Coinbase could also be at risk. The commission filed a lawsuit against the exchange in June for allegedly offering unregistered securities, which is one of the features of Web 3.0.

Cryptocurrency and SEC Court Ruling

The U.S. lawmaker, Rep. Torres, who shares a surname with the judge in the SEC v. Ripple case, Judge Analisa Torres, referred to the XRP court ruling as the “Torres Doctrine” — likely referring to the judge and not himself, as he “never met a Torres who was wrong on crypto.” Rep. Torres is a member of the Congressional Blockchain Caucus.

It’s unclear how the SEC intends to respond to the court ruling. Gensler said on July 17 that he was “disappointed” in the impact the judge’s decision could have on retail investors, and the commission was still considering what, if any, actions it might take.

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