US Congressman Ritchie Torres wrote a letter to SEC Chairman Gary Gensler, asking the SEC to reconsider its approach to regulating cryptocurrencies, calling the attacks “stupid” and “crusade.”
Congresswoman Torres referred to a recent court ruling by New York Southern District Judge Analisa Torres, who ruled that cryptocurrencies are not securities in and of themselves, but can be sold as part of investment contracts covered by the Howey Test.
Torres described the decision as a “landmark legal opinion” that rejects the “regulatory excesses” and “sloppy” practices of the SEC's Howey Test.
Torres called the judge's decision the 'Torres Doctrine', which he said should guide the SEC's future actions and provide legal clarity to the crypto industry.
He also criticized the SEC for failing to provide fair reporting, clear rules or consistent guidance to the crypto industry and instead relying on 'generally politically timed enforcement actions'.
The Member of Congress urged the SEC to focus its efforts on combating fraud, market manipulation and misuse of client funds, rather than attempting to regulate digital non-security assets. He said he hopes the SEC will be 'punished' by the court's decision and re-evaluate its 'regulatory attack' on crypto assets.
*Not investment advice.
