New York Democrat Ritchie Torres has intensified his critique of the U.S. Securities and Exchange Commission (SEC). According to the Congressman, SEC has not given “clear guidance” to the crypto industry.
Congressman Torres calls for fully adopting the “Torres Doctrine” after Analisa Judge Torres’ ruling. He emphasizes the importance of this decision for the SEC’s approach to crypto. The phrase signifies legal clarity amid regulatory chaos.
After the Ripple Lab’s court decision, the politician wrote an open letter to SEC Chairman Gary Gensler asking if the agency intends to end its crypto ‘crusade’.
Court Decision Summary
In a recent ruling, the SEC v. Ripple Lab’s judge declared that XRP is not a security. According to Torres, the judge’s strict application of the Howey Test, a standard for identifying securities, exposed the SEC’s sloppy approach.
“Judge Torres has made it crystal clear to the SEC that digital assets are not securities in the abstract and that it lacks the legal authority to regulate digital assets untethered from an actual security offering,” the congressman wrote.
Chair Gensler expressed disappointment in the ruling of the Judge and mentioned the possibility of an appeal. However, Torres believes the likelihood of an immediate appeal success is minimal due to fact-finding requirements. Hence, the Torres Doctrine will prevail as the precedent for now.