US Chamber of Commerce slams SEC’s ‘haphazard’ regulation efforts
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The United States Chamber of Commerce has blasted the Securities and Exchange Commission (SEC) for its “haphazard, enforcement-based approach” to regulating the cryptocurrency industry on American soil.
In an amicus .
The complaint was filed after the crypto exchange received a Wells notice from the SEC in March concerning the exchange’s “potential violation” of U.S. securities law.
It’s worth noting that Coinbase’s complaint isn’t asking the court to force the SEC to adopt new rules for cryptocurrencies. Instead, the exchange is merely requesting that the commission provide a response to its July petition, which it is legally entitled to receive within a “reasonable amount of time.”
Directly addressing this point, the Chamber of Commerce claimed that SEC’s “refusal” to respond to Coinbase or “otherwise engage in any rulemaking” isn’t just harmful, they are in fact, unlawful.
“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 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 deemed “securities” under Federal Law.
Related: Coinbase legal chief sends letter to SEC on RIA rulemaking
It highlighted that the answer to this question would have “immense implications” for “every person involved” in the emerging, $1 trillion digital-asset economy.
“Remarkably, the Securities and Exchange Commission — despite proclaiming itself the primary regulator of digital assets — has refused to resolve this threshold question.”
The Chamber of Commerce isn’t alone in providing legal support for Coinbase. Paradigm, the crypto investment firm led by Coinbase co-founder Fred Ehrsam petitioned to file another amicus brief in support of the crypto exchange, similarly claiming that the SEC’s actions have “crippled a nascent industry.”
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