In a dramatic turn of events, the United States Chamber of Commerce, the world’s most prominent business organization, has publicly backed cryptocurrency exchange Coinbase in its ongoing legal wrangle against the Securities and Exchange Commission (SEC). The Chamber has criticized the SEC for what it calls a “haphazard, enforcement-based approach” to cryptocurrency regulation.
Importantly, this is the U.S. Chamber of Commerce, not the Chamber of Digital Commerce, signaling that support for the crypto industry is gaining ground in traditional business sectors.
The Power of the Amicus Brief
On May 9, the Chamber of Commerce made its stance known through an amicus brief filed with the U.S. Court of Appeals. It accused the SEC of deliberately creating a volatile and uncertain regulatory environment for cryptocurrency companies operating within the U.S.
The term “amicus brief,” or “friend of the court,” refers to advice or information offered by third parties not directly involved in the court case but who have a strong interest in the subject matter.
“Nobody Knows for Certain Which Digital Assets Are ‘Securities”
The Chamber’s brief begins by highlighting the fundamental issue plaguing the digital asset industry – the lack of regulatory certainty. The brief states, “As it stands today, nobody knows for certain which digital assets, if any, are ‘securities’ under federal law.” This ambiguity is causing widespread confusion and is delaying growth and innovation in the U.S. digital asset space.
The Chamber’s Arguments
James A Murphy, Lawyer & Founder of Metalawman, highlighted the three main arguments put forth by the Chamber in his tweet: “Regulatory uncertainty is killing innovation in the U.S., the SEC is destabilizing the digital assets regulatory environment, and the SEC is violating Constitutional Due Process and Fair Notice rights. The brief bluntly declares, “The SEC’s actions are not just harmful policy; they are unlawful.”
“The Court will give these arguments advanced by the U.S. Chamber of Commerce serious attention… The largest, most influential, business organization in the U.S. has just declared it stands with crypto.” James A Murphy
The Chamber also took the SEC to task for failing to provide clarity on which, if any, of the approximately 20,000 digital assets in existence should be classified as “securities” under federal law. According to the Chamber, this issue has “immense implications” for everyone involved in the booming $1 trillion digital-asset economy.
Implications for the Crypto Industry
The U.S. Chamber of Commerce’s involvement, in this case, is a big deal for the crypto industry. The court is likely to give serious consideration to the arguments put forward by such a prominent organization.
Are clearer guidelines on the horizon? Will this boost innovation and investment in the crypto sector? Only time will tell.
Source: https://coinpedia.org/news/is-the-secs-regulation-of-crypto-unlawful-us-chamber-of-commerce-delivers-shocking-verdict/