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Rep. Torres asks US GAO to analyze SEC ‘failure’ to guard public towards FTX | NEWSRUX

An American legislator has requested the USA Authorities Accountability Workplace (GAO) to look into the efficiency of the Securities and Trade Fee (SEC) relating to the just lately failed crypto alternate FTX. 

Rep. Ritchie Torres wrote to U.S. Comptroller Common Gene Dodaro on Dec. 6 requesting that the GAO, the federal legislative watchdog, conduct a assessment of the SEC’s failure to guard the general public from “the egregious mismanagement and malfeasance of FTX.” The strongly worded letter additionally criticized chairman Gary Gensler’s management generally. Torres wrote:

“If the SEC had performed the due diligence of totally investigating the financials of FTX, there would have been a larger chance of exposing the crypto alternate for what it really is: a home of automotive[d]s constructed on monopoly cash printed out of skinny air.”

Apart from that passage, Torres’ letter was nearly fully dedicated to a critique of SEC chair Gensler, who “by the logic of his personal public pronouncements, is singularly liable for regulatory failures surrounding the collapse of FTX and its affiliate FX US.” Addressing Gensler’s insistence that almost all of cryptocurrencies are securities and due to this fact topic to SEC regulation, Torres requested rhetorically:

“If the SEC has the authority [as] Mr. Gensler claims, why did he fail to uncover the most important crypto Ponzi scheme in US historical past?”

Torres, like Gensler, is a Democrat who represents the South Bronx in New York Metropolis. He’s a vocal proponent of cryptocurrency. Satirically, he cosigned a bipartisan letter headed up by Rep. Tom Emmer questioning the SEC’s authority to hunt info from crypto corporations in March. Emmer has additionally questioned Gensler’s oversight within the wake of the FTX collapse.

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On Dec. 2, Torres launched payments to the Home of Representatives titled “To require sure cryptocurrency exchanges to make disclosures referring to proof of reserves to the Securities and Trade Fee, and for different functions” and “To ban lending, leveraging, or co-mingling buyer funds by cryptocurrency exchanges with out consent of a buyer.” The payments have been referred to the Home Monetary Providers Committee.