Representative Ritchie Torres (D-CA) has emerged as a leading advocate for cryptocurrency regulatory reforms, taking a strong stance against the U.S. Securities and Exchange Commission (SEC) and its approach to the crypto industry. He accuses the SEC of waging a “war on the whole industry” with its “regulation by enforcement” tactics, which he believes unfairly targets crypto innovators with arbitrary actions.
In response to these concerns, Torres has proposed the Financial Innovation and Technology (FIT) for the 21st Century Act, a legislation aimed at bringing clarity and fairness to the crypto market.
The act seeks to define which cryptocurrencies fall under the SEC’s jurisdiction. It provides a pathway for assets to transition to the Commodity Futures Trading Commission (CFTC) if they can demonstrate sufficient decentralization.
During a recent House Financial Services Committee session, Torres passionately advocated for the FIT Act, emphasizing fostering innovation while ensuring investor protection. He also supported an additional measure focused on stablecoins, recognizing their practical use case in cryptocurrency.
However, there have been recent complications in the bipartisan discussions regarding the stablecoin measure, as reported by Reuters on July 27. This setback highlights the challenges in reaching a consensus among policymakers on stablecoin regulations.
Despite this, the crypto industry remains eager to see the outcome of these legislative efforts, as the proposed measures can significantly impact how cryptocurrencies are regulated in the United States. The FIT Act could provide much-needed clarity for market participants, influencing investment, innovation, and consumer protection.
Moreover, Torres’ proposal to allow stablecoin issuers to choose between federal and state regulations is seen as a positive step toward creating a more conducive environment for the stablecoin industry and encouraging further innovation.
As the weeks unfold, all eyes are on Representative Torres and the progress of the FIT Act and stablecoin measure. His determination to bring about comprehensive regulatory reforms in cryptocurrency showcases his commitment to balancing fostering innovation and safeguarding investors. The outcome of these legislative efforts will undoubtedly shape the future of the crypto market in the United States.