Key takeaways:
- The SEC has come under fire for its regulatory approach from Coinbase and the cryptocurrency industry, with the support of the U.S. Chamber of Commerce.
- According to a court petition, Innovation has been impeded by the SEC’s delayed and ambiguous regulatory measures.
The U.S. Chamber of Commerce has strongly criticized the Securities and Exchange Commission (SEC) for its regulatory approach towards the digital asset industry. The Chamber accused the SEC of intentionally creating confusion by asserting broad authority over digital assets and adopting an inconsistent enforcement strategy.
According to the Chamber, the SEC’s failure to establish a clear regulatory framework for the industry undermines principles of due process, administrative law, and effective governance.
Additionally, the Chamber argued that the SEC’s actions seemed to be punishing cryptocurrency companies for not complying with a law they did not fully understand or know how to apply to their operations.
The U.S. Chamber of Commerce, a prominent business advocacy group, has voiced its concerns over the regulatory approach of the Securities and Exchange Commission (SEC) towards digital assets such as ether, Coinbase, and Kraken, as well as the broader digital asset industry.
In support of Coinbase, which has taken legal action against the SEC, the Chamber filed an amicus brief requesting the court to compel the SEC to respond to Coinbase’s previous petition for rulemaking. This petition sought clarity on regulatory rules and posed questions regarding the regulation of digital assets.
The Chamber’s amicus brief highlights the main issue faced by the digital asset industry, which is the lack of regulatory certainty.
It emphasises the fact that there is currently no clear understanding of which digital assets qualify as “securities” under federal law. This ambiguity has led to widespread confusion and is impeding the growth and innovation of the U.S. digital asset space.
The U.S. Chamber of Commerce strongly criticized the Securities and Exchange Commission (SEC), stating that its actions were not only detrimental to the economy but also unlawful. The Chamber highlighted the damaging effects caused by delays and lack of regulatory clarity.
Eugene Scalia, Counsel for Coinbase, also emphasized the urgency of the situation. Coinbase filed a petition requesting a prompt response from the SEC to their rulemaking petition. It is important to note that Coinbase is not seeking to dictate the agency’s response, but rather seeking official acknowledgment of their petition
The Chamber argued that the SEC’s lack of clarity has resulted in economic harm to both Coinbase and the broader business community. The uncertainty hampers productive activities, stifles innovation, and undermines the overall economic and strategic interests of the United States.
Furthermore, the ongoing uncertainty has implications for the nation’s geopolitical interests and the continued dominance of the U.S. dollar, considering the increasing importance of digital assets in international monetary policy.
