New York Democratic Congressman Ritchie Torres has called for the US Securities and Exchange Commission (SEC) to open two independent investigations into the handling of digital assets.
US Congressman Requests SEC Investigation
In two public letters, Representative Torres expressed concern about the SEC's approach, describing it as “arbitrary and heavy-handed”.
The initial investigation request focuses on the SEC's decision to grant a special-purpose broker-dealer (SPBD) license to Prometheum, a trading platform for digital assets that does not actually trade digital assets.
Representative Torres expressed concern about the unusual circumstances surrounding this decision, and questioned the SEC's decision to license a platform that it considers deceptive.
In the second letter, Representative Torres criticized the SEC for not establishing a robust and practical process for registering real-world digital asset platforms.
He expressed disappointment with what he saw as the SEC's lack of progress in creating a meaningful path to registration for platforms operating in the real world.
Representative Torres argued that the SEC's actions reflected SEC Chair Gary Gensler's attempt to politicize the registration process.
The letters were addressed to Deborah Jeffrey, the SEC's Inspector General, and Gene Dodaro, the Government Accountability Office's Inspector General, seeking independent investigations into the SEC's actions and decision-making processes.
Representative Torres likened the SEC to an “overzealous traffic cop” who arbitrarily issues speeding tickets and lets people guess the actual speed limit.
He criticized the SEC's reliance on “regulation through sanctions” and highlighted the need for a more effective and transparent regulatory approach.
*Not investment advice.