2 min read

US Chamber of Commerce Criticizes SEC, Supports Coinbase in Legal Battle

A prominent player in the business sphere, the organization claims the SEC's "regulatory chaos is deliberate, not coincidental."

The US Chamber of Commerce rebuked the Securities and Exchange Commission (SEC) on Thursday, criticizing the agency for its regulatory stance on the digital asset sector.

The Chamber submitted an amicus brief supporting Coinbase, which filed a lawsuit against the SEC last month. The exchange seeks a court order requiring the SEC to address its "petition for rulemaking" submitted in July. The petition requests that the SEC establish and implement regulations for digital assets and provide clarification on regulatory issues.

Coinbase now has the backing of one of the world's largest business organizations. The US Chamber of Commerce represents the interests of over 3 million businesses and organizations across the country, ranging from small enterprises to global corporations, as stated on its website.

Amicus briefs are legal documents containing information or advice pertinent to a specific court case and are provided by third parties. The US Chamber of Commerce alleges that the SEC intentionally fosters uncertainty to hinder the growth of the digital asset industry.

The Chamber wrote, “The SEC has intentionally clouded the situation by asserting broad authority over digital assets while using an inconsistent, enforcement-driven approach. This regulatory turmoil is purposeful, not accidental.”

To clarify, Coinbase is not asking the court to force the SEC to create new regulations for digital assets. The exchange simply wants a response, which it is legally entitled to within a reasonable time frame. The US Chamber of Commerce asserts that the SEC's failure to respond has “destabilized” the regulatory landscape surrounding cryptocurrencies.

Coinbase has built its reputation on regulatory compliance and transparency. However, the exchange received a Wells Notice in March, warning it that the SEC may soon take enforcement action against the company. The SEC claimed that Coinbase's staking products are unregistered securities and also referred to other aspects of its business, such as Coinbase Wallet.

The US Chamber of Commerce also contends that the SEC's regulatory approach conflicts with the right to fair notice, which requires companies to have adequate warning of what constitutes improper behavior before action is taken against them.

The Chamber wrote, “The SEC's actions are not just detrimental policy; they are unlawful.” The organization added that the agency's refusal to “define the rules of engagement,” combined with its actions, violates the right to due process.

The US Chamber of Commerce argues that relying on enforcement actions for regulatory clarity is damaging in other ways, as it suppresses the public's ability to contribute input on how digital assets should be regulated.

The Chamber stated, “By advancing through enforcement, the SEC has deprived the public of any chance to comment on its application of Depression-era laws to claim jurisdiction over a trillion-dollar industry. It strips the entire public of its right to be heard.”

Investing in Crypto: The Bottom and the Looming Bull Run

Cryptocurrency has never been a space for the faint of heart, with its extreme volatility and the associated risks and rewards. But, it's essential...

Read More

The Ongoing Crypto ETF Race: Is it Unfair?

The cryptocurrency world, as well as the traditional financial world, is abuzz with talk of Exchange Traded Funds (ETFs). It appears to be the next...

Read More

BlackRock Initiates Bitcoin ETF Filing in a Bold Move Towards Cryptocurrency

In July 2022, BlackRock, the world's largest asset management firm, was actively traded on the New York Stock Exchange (NYSE). 

Read More