US Representative Ritchie Torres has called for two separate investigations into the Securities and Exchange Commission (SEC) in two letters he made public. Torres criticized the SEC’s current approach, stating that instead of setting proper rules or providing guidance, the commission preferred to communicate through sanctions. However, he emphasized that this approach is not the way to regulate digital assets.
Request for Investigation into SEC
Recent developments, including lawsuits filed by the SEC against Binance and Coinbase, have increased tension between financial regulators and crypto companies. The SEC has faced intense criticism during this process. Additionally, a historic decision was made in the Ripple case yesterday. A US judge ruled that Ripple’s XRP sales do not constitute an investment contract, dealing a significant blow to the SEC’s reputation.
Criticism towards the SEC is not limited to crypto company officials. In recent times, some members of Congress have also criticized the commission’s current approach, stating that it prefers sanctions over providing guidance in crypto regulation. US Representative Ritchie Torres announced on Thursday that he has requested two separate investigations into the SEC in a letter made public.
Congressman Criticizes SEC
US Representative Ritchie Torres called for two separate investigations into the Securities and Exchange Commission (SEC) in two letters he made public. Torres criticized the SEC’s current approach, stating that instead of setting proper rules or providing guidance, the commission preferred to communicate through sanctions. However, he emphasized that this approach is not the way to regulate digital assets.
Torres sent one letter to SEC Inspector General Deborah Jeffrey and the other to Government Accountability Office Inspector General Gene Dodaro. Furthermore, US Representative Ritchie Torres posted the following statement on his official Twitter account:
“The SEC acts like an overzealous traffic cop who arbitrarily fines drivers while keeping the speed limit secret. It prefers communicating through sanctions rather than rules or guidance. However, this is not the way to regulate digital assets. I request that investigations be initiated.”
