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The US Chamber of Commerce has criticized the Securities and Exchange Commission (SEC) for its “haphazard, enforcement-based approach” to regulating the cryptocurrency industry on American soil.
In an amicus memo filed with the U.S. Court of Appeals on May 9, the U.S. Chamber of Commerce strongly supported Coinbase, accusing the SEC of deliberately creating a dangerous and uncertain environment for crypto companies operating in the country.
“The SEC has deliberately confused the situation by claiming full power over digital assets in a haphazard, enforcement-based approach,” the post reads.
“This normative chaos is deliberate, not accidental.”
“Amicus opinion” comes from the Latin term “friend of the court” and refers to advice or information provided by third parties who are not explicitly involved in a particular court case.
In addition, the Chamber of Commerce has requested the SEC to respond immediately to Coinbases’ April 25 complaint, which aims to force the regulator to respond to its “rulemaking petition” and provide clearer regulatory guidance for crypto companies operating in the country.
The complaint comes after the cryptocurrency exchange received a Wells notice from the SEC in March about the exchange’s “potential violation” of U.S. securities laws.
It is worth noting that the Coinbase complaint is not asking the court to force the SEC to pass new rules for cryptocurrencies. Instead, the exchange is simply asking the commission to respond to the July petition, which it is legally entitled to receive within a “reasonable time frame.”
Addressing this point directly, the Chamber of Commerce said that the SEC’s “refusal” to respond to Coinbase or “otherwise participate in rulemaking” is not only harmful, but actually illegal.
“The actions of the SEC are not just a malicious policy, they are illegal, and the consequences of the ongoing SEC delay are also serious for this reason.”
The Chamber of Commerce also urged the financial regulator not to give a clear answer to the question of which of the approximately 20,000 currently existing digital assets should be considered “securities” under Federal law.
Related: Coinbase Head of Legal Submits Letter to SEC on RIA Rulemaking
It emphasizes that the answer to this question will have “huge implications” for “every person involved” in the emerging $1 trillion digital asset economy.
“It is notable that the Securities and Exchange Commission – despite proclaiming itself the primary regulator of digital assets – has refused to address this threshold issue.”
The Chamber of Commerce is not the only one providing legal support to Coinbase. Paradigm, a cryptocurrency investment firm led by Coinbase co-founder Fred Ehrsam, has filed another amicus memo in support of the cryptocurrency exchange, similarly arguing that the SEC’s actions have “harmed the nascent industry.”
