Representative Richie Torres calls for SEC investigation into Promethium’s license approval

Ripple’s partial victory in its battle with the US Securities and Exchange Commission (SEC) in a court ruling has paved the way for the small but significant regulatory clarity the cryptocurrency industry has been denied for so long. Now all eyes are on the safety regulator, who, according to Congressman Richie Torres, “is acting like an overzealous traffic cop, ticketing drivers arbitrarily while keeping speed limits a secret.”

As such, Torres wants the SEC to investigate his approach to the digital asset industry and accused the regulatory agency’s boss, Gary Gensler, of “politicizing” the registration process by granting a controversial license to Promethium.

SEC under scanner for ‘unusual backroom deals’

Representative Richie Torres (D.N.Y.) drafted the request for two investigations of licenses granted by the SEC to Promethium Ember ATS under unusual circumstances. in two letters addressed SEC Inspector General Deborah Jeffery and Comptroller General Jean Dodaro Torres questioned whether the issuance of Promethium’s special purpose broker-dealer (SPBD) license was a political ploy by the financial regulator.

Torres wrote,

“Promethium appears to be nothing more than a Potemkin platform, serving as a timely talking point for crypto critics rather than a true trading platform for crypto customers. The questionable decision to license a deceptive digital asset platform represents Chairman Gary Gensler’s latest attempt to politicize the registration process in a way rarely seen in SEC history.

The SEC has received severe backlash from crypto firms who believe the regulator has tried to aggressively take control of the market. Apart from a few unsuccessful petitions seeking clarity on crypto regulations, the agency has yet to be indicted for its alleged behavior. But that may change.

Torres’ letters highlighted that the watchdog may have been arbitrary with its approach to crypto regulation; So his call for an “independent review” of the financial regulator’s “disorganized and heavy-handed” approach to digital assets could prove beneficial in expediting needed regulation.

promethium controversy

The letter comes after the Blockchain Association, a United States-based crypto advocacy group, issued a similar request calling for an investigation into crypto firm Promethium.

In addition to pointing to the SPBD license approval, the group urged SEC Inspector General Deborah Jeffery to look into how the firm’s CEO, Aaron Kaplan, secured a seat while testifying before the US House Financial Services Committee last month. Did.