US lawmaker calls on SEC chair to reassess stance on crypto following Ripple ruling

New York Rep. Ritchie Torres has called on US Securities and Exchange Commission (SEC) Chairman Gary Gensler to reconsider the regulator's position on cryptocurrencies following a "terrible day in court."

In a July 18 letter to Gensler, Torres required the SEC limits its enforcement cases to "bona fide bad actors" rather than "indiscriminately" treating most crypto assets as securities under its purview. The lawmaker's letter followed a court ruling in the SEC case against blockchain firm Ripple that suggested that XRP (XRP) token was largely not a value.

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

Crypto regulation by app had a terrible day in court.

In light of the landmark SDNY decision in the Ripple case, @SECGov must reassess its reckless regulatory assault on the crypto industry.

My letter to President Gensler: pic.twitter.com/Mrk63N4KhH

— Rep Ritchie Torres (@RepRitchie) July 18, 2023

Torres echoed other experts in suggesting a fast appeal A court decision was unlikely, and with a new legal basis, the SEC's case against Coinbase could also be at risk. The Commission filed a lawsuit against the stock in June for allegedly offering unregistered securities.

“[The SEC] must reassess its reckless regulatory assault on the crypto industry."

Related: Ripple court ruling makes call for regulation “more compelling and more urgent”: Former CFTC Chairman

Coincidentally, the US legislator shares a last name with the judge in the SEC v. Ripple, Judge Analisa Torres. She referred to the XRP court ruling as the "Torres Doctrine", probably Referrer the judge and not himself, since "he never met a Torres who was wrong with cryptocurrencies." Representative Torres is a member of the Congressional Blockchain Caucus.

It is unclear how the SEC intends to respond to the court ruling. Gensler said on july 17 that he was "disappointed" by the impact the judge's decision could have on retail investors, and that the commission was still considering what, if any, actions it might take.

Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Say?