- SEC may face growing regulatory scrutiny soon after XRP has been declared not a security.
- Rep. Ritchie Torres is calling for two independent investigations into SEC’s handling of crypto cases.
- SEC filed lawsuits against major crypto exchanges such as Binance and Coinbase.
The US Securities and Exchange Commission (SEC) may face growing regulatory scrutiny soon as New York Congressman Ritchie Torres pushes for two independent investigations into the regulator’s aggressive treatment of cryptocurrencies.
Over the years, the SEC’s actions against the crypto industry have been deemed harsh, but recent months have witnessed an even stronger crackdown.
Numerous companies that launched cryptocurrencies have been compelled to pay fines for allegedly launching securities, resulting in lengthy legal battles. Among the high-profile cases is the SEC’s lawsuit against Ripple, which may have effectively concluded yesterday with a partial and official victory for Ripple and XRP holders.
Additionally, lawsuits have been filed against major crypto exchanges such as Binance and Coinbase. Surprisingly, Coinbase, which has maintained regulatory compliance for years, was accused of offering securities by SEC Chair Gary Gensler.
The SEC’s disapproval of Bitcoin exchange-traded fund (ETF) applications has also drawn criticism. Despite growing demand, the regulator has rejected these proposals for a decade, citing various reasons each time. Even proposals put forward by renowned fund managers like BlackRock and Fidelity were dismissed, raising questions about the SEC’s standards for evaluating ETF proposals.
Congressman Torres’s call for independent investigations reflects concerns about the SEC’s treatment of cryptocurrencies and the potential impact on the industry. As the cryptocurrency market continues to evolve, stakeholders eagerly await the outcome of these proposed investigations, which could shed light on the regulator’s actions and their implications for the broader financial landscape.
