The United States Chamber of Commerce has recently criticized the Securities and Exchange Commission (SEC) for its seemingly disorganized and enforcement-centric approach to regulating the cryptocurrency industry in the country. In an amicus brief filed to the U.S. Court of Appeals on May 9, the Chamber threw its full support behind Coinbase, accusing the SEC of intentionally creating a precarious and uncertain environment for crypto companies operating in the U.S.
According to the Chamber, the SEC has purposefully obscured the regulatory landscape by asserting expansive authority over digital assets while employing a chaotic enforcement-based approach. The Chamber argues that this regulatory disorder is intentional and not a result of coincidence.
Furthermore, the Chamber of Commerce is pressuring the SEC to respond quickly to Coinbase’s April 25 complaint, which seeks to compel the regulator to address its petition for rulemaking and provide clearer guidelines for crypto firms operating in the country. The complaint came after Coinbase received a Wells notice from the SEC in March concerning potential violations of U.S. securities law by the exchange.
It is important to note that Coinbase’s complaint is not requesting the court to force the SEC to implement new rules for cryptocurrencies. Instead, the exchange is only asking for the commission to provide a response to its July petition, to which it is legally entitled to receive within a reasonable time frame.
The Chamber of Commerce took a firm stance against the SEC’s apparent refusal to respond to Coinbase or engage in any rulemaking, stating that these actions are not only harmful but also unlawful. The consequences of the SEC’s continued delay are severe for this reason too.
The Chamber also criticizes the financial regulator for not providing a clear answer to the question of which of the nearly 20,000 digital assets currently available should be considered “securities” under Federal Law. The Chamber points out that the answer to this question would have immense implications for every individual involved in the emerging $1 trillion digital-asset economy.
The Chamber of Commerce is not the only entity supporting Coinbase in this legal battle. Paradigm, a crypto investment firm led by Coinbase co-founder Fred Ehrsam, has petitioned to file another amicus brief in support of the crypto exchange. Like the Chamber, Paradigm claims that the SEC’s actions have effectively stifled a burgeoning industry.
As the regulatory environment surrounding cryptocurrencies remains uncertain, the ongoing tension between the SEC and crypto companies like Coinbase emphasizes the need for clear and concise guidelines. With major entities such as the Chamber of Commerce and Paradigm backing Coinbase’s quest for regulatory clarity, the pressure is mounting on the SEC to provide definitive answers and create a more transparent framework for the crypto industry.
Source: Cointelegraph
