Representative Ritchie Torres (D-CA) has taken a stand against the U.S. Securities and Exchange Commission (SEC) in what he calls a “war on the whole industry” in the cryptocurrency space.

On July 28, Torres publicly criticized the regulatory agency’s approach under Chair Gary Gensler, accusing the SEC of “regulation by enforcement” and imposing arbitrary actions on crypto innovators.

In response to these concerns, Torres has put forth the Financial Innovation and Technology (FIT) for the 21st Century Act. This proposed legislation aims to reform the market structure by clearly defining which cryptocurrencies fall under the SEC’s jurisdiction.

The SEC would have authority over a crypto asset until it can demonstrate sufficient decentralization. Once proven to be decentralized, the asset would be reclassified as a commodity, falling under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

During the House Financial Services Committee’s session on July 26, Torres strongly advocated for the FIT Act, signaling his determination to bring clarity and fairness to the crypto market.

Moreover, Torres is supporting an additional measure that focuses on stablecoins. He emphasizes the significance of stablecoins as a clear and practical use case for cryptocurrencies. The proposed measure aims to establish comprehensive guidelines for Stablecoin issuers to ensure that all reserves are adequately maintained.

Furthermore, Torres has expressed support for providing stablecoin issuers the freedom to choose between federal and state regulations, such as New York’s Bitlicense. This move could foster innovation and create a more conducive environment for the stablecoin industry.

However, despite Torres’ support, Reuters reported on July 27 that a bipartisan compromise regarding the stablecoin measure has recently collapsed. This development adds a layer of complexity to the ongoing discussions about stablecoin regulations and highlights the challenges in reaching a consensus among policymakers.

Consequently, the crypto industry closely watches the developments surrounding the FIT Act and the stablecoin measure. The proposed legislation has the potential to significantly impact how cryptocurrencies are regulated and provide much-needed clarity for industry participants. The outcome of these legislative efforts could shape the future of the crypto market in the United States, influencing investment, innovation, and consumer protection.

Representative Ritchie Torres is at the forefront of advocating for comprehensive regulatory reforms in cryptocurrency. With the FIT Act and stablecoin measure on the table, the coming weeks will be crucial for the industry as policymakers strive to balance innovation and investor protection.