Congressman Ritchie Torres recently expressed his desire for unbiased investigations of the SEC’s (U.S. Securities Change Fee) procedures, criticizing what he sees as the agency’s disjointed and oppressive approach to the developing cryptocurrency market.
A Controversial Resolution: Prometheum
The SEC’s disputed decision to grant Prometheum a specific purpose broker-dealer (SPBD) licence was a key issue covered in the Congressman’s letters.
Torres has called the marketplace a Potemkin platform since it ironically doesn’t make it easy to purchase and sell digital possessions. This phrase implies that it functions less as a trustworthy trading platform for cryptocurrency users and more as a talking point for critics of the industry.
Regulatory Readability: Is it a Myth?
Torres noted the absence of clear guidance and legislation, which he believes is necessary for compliance across the board in the industry. He made the case that enforcement rather than explicit instructions or guidance has been the SEC’s preferred method of communication.
He said that this approach has left market participants in the dark about the rules they should be following when it comes to how securities law should be applied to digital assets.
Politicizing the Registration Process for
Additionally, the congressman expressed his concerns regarding what he perceives to be a politically motivated resolution by SEC Chair Gary Gensler. According to Torres, Gensler’s decision to license Prometheum amounts to an unjustified politicization of the registration process—a level of engagement that has rarely been observed in the SEC’s previous operations.
Requires Strict, Effective Registration Procedures
Torres demanded a rapid impartial assessment of the SEC’s approaches to digital assets. He specifically asked for a thorough investigation of the SEC’s failure to come up with a sound, workable procedure for the registration of legitimate digital asset platforms.
In addition, he demanded an investigation into what he called the strange backdoor arrangement that the SEC arranged for Prometheum. This request for an investigation of the SEC’s business practises apparently follows Ripple’s recent triumph over the infamous SEC in a dispute that had been underway since 2020.
