Congressman Ritchie Torres recently directed an open letter toward Gary Gensler, SEC Chairman, voicing his dissatisfaction with the current state of crypto regulations – or more precisely, the lack thereof. According to Torres, the US Securities and Exchange Commission (SEC) has been inconsistent in its approach towards the nascent industry, creating an alarming sense of uncertainty.
This sentiment was strengthened following a court ruling on the famous Ripple Labs case, wherein it was declared that XRP did not classify as a security for programmatic sales on digital asset exchanges. The ruling highlighted a significant crack in the SEC’s overseer strategy, which Torres terms as “regulation by enforcement”.
While the jurisdiction of the court ruling might not stretch far and wide, the precedent it sets cannot be ignored. It hints at the pivotal need to alter the current standpoint of the SEC – that most digital assets should be registered as securities.
In the light of this revelation, the SEC’s aggressive clampdown on crypto comes under scrutiny. With charges against major crypto players like Binance and Coinbase, as well as Nexo, a crypto lending platform, the SEC has been far from quiet in its regulatory position. This, despite stark criticism of the agency’s approach.
Accusations of “unusual” approvals, such as that of the crypto broker-dealer “Prometheum,” have also been lobbed at the SEC. This, in tandem with the ambiguity in classification and registration of digital assets, portrays a story of regulatory ambiguity. With firms left wandering in the labyrinth of crypto’s regulatory landscape, the approval of Prometheum seems more like a smoke screen than a positive legislative step.
Gensler, however, sees the court ruling as a victory for institutional investors while expressing disappointment on behalf of retail investors. His stance on the issue seemingly remains firm, even amid mounting criticism. While the current discord paints a picture of regulatory disarray, it reflects the struggle in molding fit-for-purpose laws for a rapidly evolving digital marketplace. The pressing question is how will the SEC, under Gensler’s stewardship, reconcile their aggressive approach with the demand for clear, consistent guidelines that the industry so desperately needs. It’s a balancing act, and the crypto world and legislative circles are waiting with bated breaths for the next move.
Source: Cryptonews
