World’s Largest Business Organization Supports Coinbase in Battle Against SEC
The US Chamber of Commerce strongly criticizes the Securities and Exchange Commission (SEC) for its chaotic and enforcement-focused approach to regulating the cryptocurrency industry in the United States.
The United States Chamber of Commerce has expressed strong support for Coinbase by submitting an amicus brief to the U.S. Court of Appeals on May 9. In the brief, the Chamber accuses the SEC of intentionally causing a risky and uncertain environment for cryptocurrency companies operating within the country.
The U.S. Chamber of Commerce stated that the SEC intentionally created confusion by asserting broad control over digital assets and using an inconsistent and enforcement-oriented strategy.
The U.S. Chamber of Commerce asserts that the intentional creation of regulatory chaos, rather than it being a coincidence, is the driving force behind the current situation.
An “amicus brief,” which means “friend of the court” in Latin, refers to guidance or information offered by external parties who are not directly involved in a particular court case.
Furthermore, the Chamber of Commerce urged the SEC to promptly address Coinbases’ April 25 complaint. The complaint requests a response to its “petition for rulemaking” and the establishment of clearer regulatory guidelines for cryptocurrency firms operating in the United States.
The Amicus Curiae brief submitted by the Chamber of Commerce. Source: cointelegraph
The complaint was submitted by Coinbase in response to a received a Wells notice from the SEC in March. The notice addressed the potential violation of U.S. securities law by the crypto exchange.
It is important to highlight that Coinbase’s complaint does not seek to compel the court to mandate the SEC to establish new cryptocurrency regulations. Rather, the exchange is simply requesting the commission to provide a response to its July petition, which it is legally entitled to receive within a reasonable timeframe.
The Chamber of Commerce explicitly stated that the SEC’s refusal to respond to Coinbase or participate in any rulemaking process is not only detrimental but also goes against the law.
The Chamber of Commerce emphasized that the SEC’s actions are not only detrimental from a policy standpoint but also unlawful. The chamber highlighted that the continued delay by the SEC has severe consequences as a result.
The Chamber of Commerce further criticized the financial regulator for its failure to offer a definitive response to the question of whether any of the roughly 20,000 digital assets should be classified as “securities” under federal law.
The Chamber of Commerce emphasized that determining whether these digital assets should be considered “securities” holds significant consequences for every individual involved in the rapidly growing and valuable digital asset economy, which is estimated to be worth around $1 trillion.
Surprisingly, the Securities and Exchange Commission, despite declaring itself as the primary regulator of digital assets, has declined to address this fundamental question.
The Chamber of Commerce is not the only entity offering legal backing to Coinbase. Paradigm, the crypto investment firm led by Coinbase co-founder Fred Ehrsam, has also requested permission to submit an amicus brief in support of the crypto exchange. Paradigm shares a similar view, contending that the SEC’s actions have severely hindered the growth of an emerging industry. (Ref. petitioned to file another amicus brief )
