Rep. Torres asks US GAO to investigate SEC ‘failure’ to protect public against FTX

An American legislator has asked the United States Government Accountability Office (GAO) to look into the show of the Securities and Exchange Commission (SEC) regarding the precocious failed crypto speech FTX. 

Rep. Ritchie Torres wrote to U.S. Comptroller General Gene Dodaro connected Dec. 6 requesting that the GAO, the national legislative watchdog, behaviour a reappraisal of the SEC’s nonaccomplishment to support the nationalist from “the egregious mismanagement and malfeasance of FTX.” The powerfully worded missive besides criticized president Gary Gensler’s enactment successful general. Torres wrote:

“If the SEC had done the owed diligence of thoroughly investigating the financials of FTX, determination would person been a greater likelihood of exposing the crypto speech for what it genuinely is: a location of car[d]s built connected monopoly wealth printed retired of bladed air.”

Aside from that passage, Torres’ missive was astir wholly devoted to a critique of SEC seat Gensler, who “by the logic of his ain nationalist pronouncements, is singularly liable for regulatory failures surrounding the illness of FTX and its affiliate FX US.” Addressing Gensler’s insistence that the bulk of cryptocurrencies are securities and truthful taxable to SEC regulation, Torres asked rhetorically:

“If the SEC has the authorization [as] Mr. Gensler claims, wherefore did helium neglect to uncover the largest crypto Ponzi strategy successful US history?”

NEW this greeting — Rep. @RitchieTorres (D-NY) calls connected the Government Accountability Office (@USGAO) to analyse the SEC’s “failure to support the investing nationalist from the egregious mismanagement and malfeasance of @FTX_Official” pic.twitter.com/BdT7ZVCM7X

— Alexander Grieve (@AlexanderGrieve) December 7, 2022

Torres, similar Gensler, is simply a Democrat who represents the South Bronx successful New York City. He is simply a vocal proponent of cryptocurrency. Ironically, helium cosigned a bipartisan missive headed up by Rep. Tom Emmer questioning the SEC’s authorization to question information from crypto companies successful March. Emmer has besides questioned Gensler’s oversight successful the aftermath of the FTX collapse.

Related: Will SBF look consequences for mismanaging FTX? Don’t number connected it

On Dec. 2, Torres introduced bills to the House of Representatives titled “To necessitate definite cryptocurrency exchanges to marque disclosures relating to impervious of reserves to the Securities and Exchange Commission, and for different purposes” and “To prohibit lending, leveraging, oregon co-mingling lawsuit funds by cryptocurrency exchanges without consent of a customer.” The bills person been referred to the House Financial Services Committee.