The US Chamber of Commerce called out the Securities and Exchange Commission (SEC) on Thursday, criticizing the financial watchdog for its regulatory approach to the digital asset industry.
It filed an amicus brief in support of Coinbase, which took the SEC to court last month. The exchange wants a court to compel the SEC to respond to what it calls “petition for rulemaking” which was filed in July. The petition asks the SEC to propose and adopt rules for digital assets and answer questions related to regulation.
Today Coinbase has one of the largest business organizations in the world standing behind it. The US Chamber of Commerce represents the interests of more than 3 million businesses and organizations across the country, from small businesses to global corporations, according to its website.
Amicus briefs are legal documents that contain information or advice related to a particular court case and are provided by third parties. And the US Chamber of Commerce accused the SEC of deliberately sewing uncertainty to keep the digital asset industry on ice.
“The SEC is deliberately muddying the waters by assuming the authority to sweep digital assets while deploying a haphazard, enforcement-based approach,” it wrote. “This regulatory mess is by design, not going to happen.”
To be clear, Coinbase is not asking the court to force the SEC to adopt new rules for digital assets. The exchange just wants a response, which it is legally entitled to within a reasonable amount of time. And the SEC’s lack of response has “weakened” the regulatory environment surrounding crypto, the US Chamber of Commerce admitted.
Coinbase has staked its brand on regulatory compliance and transparency, but it has hit a snag Notice of Wells in March, where the SEC warned that it could soon take enforcement action against the exchange. The agency said that Coinbase’s staking products are not registered securities and referred to other parts of its business such as the Coinbase Wallet.
The US Chamber of Commerce also argued that the regulatory approach of the SEC is against the right of companies to fair notice, where companies are required to have adequate notice of what is improper behavior before action against them.
“The SEC’s actions are not just bad policy; they are against the law,” the US Chamber of Commerce wrote, adding the agency’s refusal to “promulgate the rules of the road” in conjunction with actions that violate due process rights.
Relying on enforcement actions to issue regulatory clarity is harmful in other ways, the US Chamber of Commerce contends, limiting the public’s ability to play a role in providing input on how digital is regulated. property.
“By proceeding through enforcement, the SEC has denied the public any opportunity to comment on the invocation of Depression-era laws to assert jurisdiction over a trillion-dollar industry,” it wrote. “It deprives the entire public of the right to be heard.”