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Rep. Torres: SEC invented ‘crypto asset security’ out of thin air

Author: Content Editor
Lawmakers in the US expressed frustration with the Securities and Exchange Commission's (SEC) approach to digital assets. The House Financial Services Committee discussed the regulatory landscape and the need for clarity. The hearing focused on the SEC's definition of "crypto asset securities" and whether the agency invented the term. Robinhood testified that it attempted to register with the SEC but faced difficulties due to the incompatibility of the broker dealer license structure. The SEC's refusal to adjust its framework was criticized as inconsistent with securities laws. Some committee members disagreed on the matter, with one stating that the SEC has generally been correct in its enforcement actions. Concerns were also raised about legislative proposals that do not sufficiently protect investors from fraud.

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