The U.S. Chamber of Commerce has taken the side of Coinbase and the crypto industry and criticized the regulatory approach of the Securities and Exchange Commission (SEC).
The advocacy group presented several critical arguments in a court filing on May 9th, stating that the SEC deliberately muddied the waters by claiming sweeping authority over digital assets while deploying a “haphazard, enforcement-based approach.”
The Chamber argued further that the SEC subverts due process, administrative law, and good governance by refusing to establish a regulatory system for the industry. It accused the regulator of running a campaign to punish crypto firms for not adhering to a law that they did not know how it applied to them.
The advocacy group stated that the crypto industry grew into a trillion-dollar market in 2021 before the SEC began its regulatory shakedown.
The Chamber stated, “The current Commission-fostered uncertainty has lowered the industry’s growth ceiling by discouraging further investment in digital-asset endeavors and inhibiting broader adoption of digital-asset products.”
Crypto firms face unacceptable risks despite compliance efforts due to regulatory uncertainty.
The body noted that the Commodity Futures Trading Commission (CFTC) and SEC can not agree on whether to classify ETH as a commodity or security. It further pointed out that while the CFTC considers ETH a commodity, the SEC has made “confused and conflicting pronouncements” regarding the digital asset.
The group cited all of the above and said that the SEC violates “Constitutional Due Process and Fair Notice Rights.” Additionally, they added that the regulator’s failure to provide regulatory clarity had impeded further growth of the crypto industry with its “harmful” and “unlawful” approach, concluding that “digital assets are ripe for rulemaking.