US Chamber of Commerce denounces SEC’s disorderly regulatory efforts

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The United States Chamber of Commerce has blasted the Securities and Exchange Commission (SEC) for its haphazard, law enforcement-based approach to regulating the cryptocurrency industry on US soil.

In an amicus brief filed with the U.S. Court of Appeals on May 9, the U.S. Chamber of Commerce threw its weight behind Coinbase, accusing the SEC of deliberately creating a precarious and uncertain landscape for companies. of cryptography operating in the country.

The SEC deliberately covered its tracks by claiming expansive authority over digital assets while deploying a haphazard enforcement-based approach, he wrote.

This regulatory chaos is intentional and not accidental.

An amicus brief derives its namesake from the Latin term, friend of the court, and refers to advice or information provided by third parties who are not explicitly involved in a specific court case.

Additionally, the Chamber of Commerce pressured the SEC to respond quickly to Coinbases’ April 25 complaint, which seeks to compel the regulator to respond to its rulemaking request and provide regulatory guidance. clearer to crypto companies operating in the country.

The Amicus Curiae Brief submitted by the Chamber of Commerce. Source: Chamber of Commerce.

The lawsuit was filed after the crypto exchange received a Wells notice from the SEC in March regarding the exchanges’ potential violation of US securities law.

It should be noted that Coinbases’ complaint does not ask the court to force the SEC to adopt new rules for cryptocurrencies. Instead, the exchange is simply asking the commission to provide a response to its July petition, which it is legally entitled to receive within a reasonable time.

Directly addressing this point, the Chamber of Commerce asserted that the SEC’s refusal to respond to Coinbase or otherwise engage in rulemaking is not only harmful, it is actually illegal.

“The SEC’s actions are not only harmful policy; they are illegal; and the consequences of the SEC’s continued delay are serious for that reason as well.”

The Chamber of Commerce also called out the financial regulator for failing to provide a clear answer to the question of which, if any, of the roughly 20,000 digital assets currently in existence should be considered securities under federal law.

Related: Coinbase Chief Legal Officer Sends Letter to SEC on RIA Rulemaking

He pointed out that the answer to this question would have immense implications for everyone involved in the emerging economy of trillion-dollar digital assets.

Remarkably, the Securities and Exchange Commission, despite claiming to be the primary regulator of digital assets, has refused to address this threshold issue.

The Chamber of Commerce is not alone in providing legal support to Coinbase. Paradigm, the crypto investment firm run by Coinbase co-founder Fred Ehrsam, has asked to file another amicus brief in support of the crypto exchange, similarly claiming that stocks of the SEC crippled a fledgling industry.

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