The U.S. Chamber of Commerce has joined the war over digital assets in an unexpected turn of events.
The Block reports that Coinbase and other critics of American regulation of the digital asset sector, notably about the position taken by the U.S. Securities and Exchange Commission (SEC), have gained the support of the important corporate lobby organization.
The United States Chamber of Commerce has criticized the Securities and Exchange Commission (SEC) for its lack of clarification over whether digital assets are considered securities under federal law. According to a court petition by the Chamber, this problem has “immense implications for every person involved in the $1 trillion digital-asset economy.”
The SEC has reportedly declined to participate in any systematic procedure or rulemaking to clarify what its asserted jurisdiction entails, choosing instead to deliver sporadic enforcement actions and public remarks. As a result, the regulatory landscape for digital assets has become unstable and unpredictable.
Coinbase asked the SEC to start the process of regulating digital-asset securities in July 2022. It demanded that the Commission respond to fundamental queries such as “Which digital assets are securities?” Coinbase’s request was echoed by more than 1,700 commentators, but the SEC showed little interest in responding, according to the Chamber.
The filing by the U.S. Chamber of Commerce is a result of Coinbase’s legal action against the SEC to force the regulator to take action.
According to the Chairman of the SEC, digital assets built on blockchains fall under the clear definition of securities laws. Despite actually rejecting Coinbase’s petition, the SEC has declined to formally respond to its decision.
The Chamber claims that Coinbase and the larger business community have suffered financially as a result of the SEC’s lack of clarification. Uncertainty hinders innovation, discourages productive behavior, and threatens the larger economic and strategic interests of the United States.
Given the growing significance of digital assets to international monetary policy, ongoing uncertainty also has ramifications for the nation’s geopolitical interests and the continued supremacy of the dollar.
The regulatory environment for digital assets has become unstable as a result of the SEC’s failure to engage in rulemaking or reply to Coinbase’s rulemaking petition, according to the Chamber.