Ritchie Torres is a member of the House Financial Services Committee. A few months ago, he wrote a letter reporting the SEC’s actions in the crypto industry. More recently, he submitted a special request to the Government Accountability Office (GAO). A sort of congressional watchdog. Check out Torres’ new letter on the FTX collapse and the SEC’s responsibility for it.
A letter exposing the SEC’s failure to protect crypto investors
In March, members of Congress, including Ritchie Torres, had address a letter to SEC Chairman Gary Gensler. They were looking forunderstand how and why the SEC collects information from private companies related to crypto and blockchain“. “We have questions regarding the Securities and Exchange Commission’s use of the powers of the Division of Enforcement and the Division of Examination, to obtain information relating to crypto and blockchain businesses“, could we read in the letter.
On December 6, Ritchie Torres has sent another letter, but this time to GAO President Gene Dodaro. He said in the document: “Dear Mr. Dodaro, I am writing to respectfully request that the Government Accountability Office (GAO) conduct an independent review of the SEC’s failure to protect the average investor.“.
The congressman also claimed that the chairman of the SEC is “singularly responsible for not exposing FTX fraud“. He estimates that the regulator clearly mishandled the FTX affair. “If he clearly had the authority to do so, why has he failed to uncover the biggest crypto Ponzi scheme in history?“, he was indignant.
Spotlight on the approach of representative Ritchie Torres
You should know that the letter sent to Gensler in March was signed by 8 members of Congress. Since then, the group formed by these 8 representatives has been nicknamed “Blockchain Eight“. That said, a Twitter user recently critical the review request sent by Torres to the GAO. He has even called the representative shameless.
He stated : “Blockchain 8 member Ritchie Torres is now asking the Government Accountability Office for a study into the SEC’s ‘failure’ to prevent the collapse of FTX, after he participated in the congressional effort to prevent the SEC from investigating FTX. Shameless“.
For Ritchie Torres, the SEC does not comply with applicable laws. The representative clarified:The regulators have failed catastrophically. President Gensler has some explaining to do“.
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