SEC’s ‘Haphazard’ Regulatory Efforts Criticized by US Chamber of Commerce

US Chamber of Commerce Criticizes SEC’s Regulatory Approach to Cryptocurrency Industry

The United States Chamber of Commerce has criticized the Securities and Exchange Commission (SEC) for its “haphazard, enforcement-based approach” to regulating the cryptocurrency industry in the US. In an amicus brief filed to the US Court of Appeals on May 9, the US Chamber of Commerce supported Coinbase and accused the SEC of intentionally creating an uncertain regulatory landscape for crypto firms operating in the country. The US Chamber of Commerce stated that “This regulatory chaos is by design, not happenstance.” An amicus brief is a submission made to a court by someone who is not a party to a particular case but has an interest in the outcome. The Chamber of Commerce also urged the SEC to respond promptly to Coinbase’s April 25 complaint. The complaint asked the regulator to reply to its “petition for rulemaking” and provide clearer regulatory guidelines for crypto firms operating in the US. The complaint was filed after Coinbase received a Wells notice from the SEC in March regarding a “potential violation” of US securities law. It’s important to note that Coinbase’s complaint is not seeking the court to force the SEC to adopt new rules for cryptocurrencies. Instead, the exchange is asking the commission to provide a response to its July petition, which it is entitled to receive within a “reasonable amount of time.” The Chamber of Commerce claimed that the SEC’s “refusal” to respond to Coinbase or “otherwise engage in any rulemaking” is not just harmful but is also unlawful. It added that “The SEC’s actions are not just harmful policy; they are unlawful; and the consequences of the SEC’s continued delay are severe for that reason too.” The Chamber of Commerce also criticized the SEC for not providing a clear answer to the question of which, if any, of the approximately 20,000 digital assets currently in existence should be deemed “securities” under Federal Law. It emphasized that the answer to this question would have “immense implications” for “every person involved” in the emerging, $1 trillion digital-asset economy. Paradigm, the crypto investment firm led by Coinbase co-founder Fred Ehrsam, also submitted an amicus brief in support of Coinbase, stating that the SEC’s actions have “crippled a nascent industry.” In conclusion, the US Chamber of Commerce has criticized the SEC’s regulatory approach to the cryptocurrency industry and has urged the regulator to respond promptly to Coinbase’s complaint. The Chamber of Commerce also called on the SEC to provide a clear answer to the question of which digital assets should be deemed “securities” under Federal Law.