The American Chamber of Commerce filed abbreviated He criticizes the Securities and Exchange Commission (SEC) actions against crypto companies.
1/BREAKING: The US Chamber of Commerce just provided a brief on @employee v. SEC, which calls the SEC to “unlawfully” operate in the digital asset space.
This is the American Chamber of Commerce – not the Digital Chamber of Commerce.
This is a big deal.
Here’s why…
– MetaLawMan (MetaLawMan) May 11, 2023
The Chamber of Commerce criticizes the SEC
The Chamber of Commerce is the largest business association in the world, representing nearly 3,000 companies in the country.
While it has broad memberships across various industries, its involvement in Coinbase vs. the SEC issue It reflects the significant impact of the regulator’s approach to digital assets and companies under US securities laws.
In the summary, the Council affirms its role in representing the interests of its members before Congress, the executive branch, and the federal courts. She regularly provides amicus curiae briefs in cases that raise issues of interest to the business community.
Their filing begins by highlighting the lack of clarity surrounding digital assets and their classification as “securities” under federal law. This uncertainty has far-reaching implications for the digital asset economy, which is estimated to be worth more than $1 trillion.
Despite the size and future valuation of the cryptocurrency markets, the SEC has failed to guide the companies. Instead, it continues to issue confusing and inconsistent enforcement actions and public statements.
The Chamber argues that the SEC’s refusal to participate in rule-making or to establish a systematic process undermines due process, administrative law, and good governance.
The main arguments
The Chamber makes three main arguments in its summary.
First, it asserts that regulatory uncertainty stifles innovation in the United States. Without clear guidelines on what digital assets are considered securities, companies are reluctant to explore technologies that hinder growth and development.
Second, the Chamber argues that the SEC’s actions destabilize the regulatory environment for digital assets. The lack of a framework and reliance on enforcement action creates an unpredictable landscape for companies operating in the space, making it difficult to make informed decisions.
Finally, they claim that the SEC violates “constitutional due process and fair notification rights.” By not providing clear guidance through formal processes, the SEC restricts the ability of federal courts to review and challenge their legal arguments, exacerbating regulatory uncertainty and impeding fair treatment.
The Chamber firmly asserts that the SEC’s actions are harmful and illegal. It argues that legal uncertainty inhibits productive behavior and stifles innovation, a concept recognized by the courts.
The crypto community sees sharing the room as showing just how important the Coinbase vs. SEC issue is. The outcome could have far-reaching implications for the digital asset space and its regulatory framework in the United States.
Brad Garlinghouse, CEO of Ripple Inc. Inc., a payment blockchain-based company, has repeatedly argued that the lack of regulatory clarity around crypto in the US forces capital elsewhere and stifles innovation.
The Securities and Exchange Commission is suing Ripple executives, including Garlinghouse, for raising billions by offering XRP, a currency they claim is an unregistered security.
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