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Congressman Torres Calls for Investigation into SEC’s Crypto Approach

Congresswoman Torres from New York has called for investigations into the Securities and Exchange Commission (SEC) for its decision to grant a special purpose broker-dealer (SPBD) license to Prometheum, a trading digital assets platform that does not actually trade digital assets. She raised concerns about the unusual circumstances under which the license was granted and criticized the SEC’s failure to establish a robust and practical process for registering real-world digital asset platforms.

In a letter to SEC Chairman Gary Gensler, Torres highlighted the need for transparency and accountability in the regulatory approval process. She expressed her concern that the SEC’s decision to grant Prometheum a SPBD license without verifying its actual trading activities undermines the integrity of the licensing system. Torres argued that such actions could potentially open the door for exploitative or fraudulent practices in the digital asset trading space.

Moreover, the congresswoman criticized the SEC for failing to develop a comprehensive procedure for registering real-world digital asset platforms. She stressed the importance of establishing clear guidelines and regulations to ensure that these platforms operate in a responsible and secure manner. Torres emphasized that the lack of a robust registration process exposes investors to unnecessary risks and undermines market stability.

Torres called on the SEC to conduct a thorough investigation into the circumstances surrounding the granting of the SPBD license to Prometheum. She urged the regulatory agency to provide detailed explanations and justifications for its decision, including any potential conflicts of interest or undue influence. Additionally, she called for a review of the SEC’s overall approach to regulating digital asset platforms to ensure that it is effective and sufficiently comprehensive.

The congresswoman’s request for investigations highlights the growing scrutiny on the regulation of digital assets and the need for stronger oversight to protect investors and ensure fair market conditions. As the popularity of digital assets continues to rise, it becomes even more crucial for regulatory agencies like the SEC to adapt and develop robust regulatory frameworks that promote innovation while safeguarding against potential risks.

Torres’ efforts align with a broader push for regulatory clarity and consistency in the digital asset industry. Many stakeholders and industry participants have been advocating for clearer guidelines and more comprehensive regulations to support the growth of the digital asset market. By calling for investigations into the SEC’s actions, Torres seeks to address these concerns and promote a more secure and transparent environment for digital asset trading.

In conclusion, Congresswoman Torres has requested investigations into the SEC’s decision to grant a SPBD license to Prometheum, a digital assets platform that does not trade digital assets. Her concerns about the unusual circumstances surrounding the license and the lack of a robust registration process for real-world digital asset platforms highlight the need for stronger regulatory oversight. By urging the SEC to conduct thorough investigations and review its overall approach to regulating digital assets, Torres aims to ensure transparency, accountability, and investor protection in the growing digital asset market.

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