The U.S. Chamber of Commerce simply He criticized the Securities and Exchange Commission (SEC)’s actions against cryptocurrency companies.
1/ BREAKING: The US Chamber of Commerce has just submitted a brief. @Coinbase v. SEC Litigation. He accused the SEC of conducting “illegal” activities in the digital asset space.
This is the US Chamber of Commerce, not the Digital Chamber of Commerce.
This is a big deal.
Here’s why…
— MetaLawMan (@MetaLawMan) May 11, 2023
Chamber of Commerce Criticizes SEC
The Chamber of Commerce is the world’s largest business association representing approximately 3,000 companies in the country.
It has a broad membership across a variety of industries, but its involvement in Coinbase vs. SEC is prominent. case This reflects the significant impact of the regulator’s approach to digital assets and companies under US securities laws.
In its brief, the Chamber emphasizes its role in representing the interests of its members in Congress, executive branch and federal courts. He regularly files court briefs on cases that raise issues of concern to the business community.
Their application begins by highlighting the lack of clarity surrounding digital assets and their classification as “securities” under federal law. This uncertainty has far-reaching implications for the digital asset economy worth over $1 trillion.
Despite the size and future valuation of the cryptocurrency market, the SEC has failed to guide companies. Instead, the government continues to take enforcement action and issue confusing and inconsistent public statements.
The Chamber argues that the SEC’s refusal to engage in rulemaking or establish systematic processes undermines due process, administrative law and good governance.
main discussion
The Chamber of Commerce raises three key issues in its brief.
First, he argues that regulatory uncertainty is hampering innovation in the United States. Without clear guidelines on what digital assets qualify as securities, businesses are reluctant to explore technologies that hinder growth and development.
Second, the Chamber of Commerce argues that the SEC’s actions will destabilize the regulatory environment for digital assets. The lack of a framework and reliance on enforcement actions creates an unpredictable situation for companies operating in this area, making informed decision-making difficult.
Finally, they allege that the SEC has violated “the right of constitutional due process and fair notice.” By not providing clear guidance through formal proceedings, the SEC limits the ability of federal courts to consider and challenge legal claims, further exacerbating regulatory uncertainty and impeding fair treatment.
The Chamber of Commerce categorically declares that the SEC’s actions are harmful and illegal. The Act argues that legal uncertainty stifles productive action and stifles innovation, a concept recognized by courts.
The cryptocurrency community sees the Chamber of Commerce’s involvement as an indication of just how important the Coinbase v. SEC case is. The outcome could have far-reaching implications for the U.S. digital asset sector and its regulatory framework.
Brad Garlinghouse, CEO of payments blockchain-based company Ripple, has repeatedly said that the lack of clarity in the regulation of cryptocurrencies in the U.S. is draining capital to other countries and stifling innovation. Says.
The SEC is suing Ripple executives, including Garlinghouse, for raising billions by offering XRP, a coin they claim is an unregistered security.
Feature image from Canva, chart from TradingView