In response to the SEC’s handling of digital assets, Congressman Ritchie Torres is calling for two independent probes. In letters made public on Thursday, Rep. Torres lambasted the SEC’s “haphazard and heavy-handed approach” and urged for investigation into its choice to provide Prometheum, a platform for trading digital assets but not actual digital assets, a special purpose broker-dealer (SPBD) license. He also emphasized the SEC’s failure to provide a reliable and workable registration procedure for platforms that deal in actual digital assets.
Rep. Torres voiced concerns about the politicization of the registration process by SEC Chair Gary Gensler in the letters he sent to Deborah Jeffrey, the Inspector General of the SEC, and Gene Dodaro, the Comptroller General of the Government Accountability Office. He attacked the SEC’s agenda-driven use of a misleading digital assets platform and condemned the lack of transparency in the real-world trading platforms’ registration procedure.
Rep. Torres compared the SEC’s method to that of an overzealous traffic cop who randomly issues fines for exceeding the posted speed limit while oblivious to the actual speed limit. He stressed the ineffectiveness of governing by enforcing regulations, and he urged for a more thorough and open regulatory framework for digital assets.The platform at the focus of the inquiry, Prometheum, has not yet made a statement.
The requests for inquiries into the SEC’s activities are a reflection of rising anxiety among cryptocurrency enthusiasts about the regulatory framework for digital assets. Clear and equitable laws are essential to stimulating innovation and safeguarding investors as the sector develops and becomes more widely accepted.