US Chamber of Commerce criticizes SEC’s regulatory approach to cryptocurrencies in blockchain filing

The United States Chamber of Commerce has criticized the Securities and Exchange Commission (SEC) for not being clear about which digital assets are considered securities under federal law. This lack of clarity has significant implications for anyone involved in the $1 trillion digital-asset economy, according to a court filing by the Chamber.

The Chamber’s filing claims that the SEC has not engaged in any systematic process or rulemaking to explain its claimed authority, instead relying on one-off enforcement actions and public speeches. This has caused regulatory uncertainty and destabilized the regulatory environment for digital assets.

In July 2022, blockchain asked the SEC to clarify which digital assets should be considered securities, and urged the commission to initiate a rulemaking process. Over 1,700 commenters supported blockchain’s call, but the SEC showed no interest in responding to the request, according to the Chamber. In response, blockchain filed a lawsuit against the SEC to force it to take action, which is what led to the Chamber’s filing.

The SEC’s Chairman has claimed that the securities laws are clear when it comes to blockchain-based digital assets. However, despite effectively denying blockchain’s petition, the SEC has not responded officially to the request.

• Bitcoin Rewards App expands into El Salvador, leading Latin American operations
• Bitcoin Argentina launches Lightning Network course
• River, a Bitcoin financial services provider, raises $35 million in Series B fundraising

The Chamber argues that the SEC’s lack of clarity has caused economic harm to the broader business community, as well as to blockchain. The uncertainty discourages productive behavior, stifles innovation, and undermines broader American economic and strategic interests. The ongoing uncertainty could also have implications for the nation’s geopolitical interests and the continued dominance of the dollar, given the increasing importance of digital assets in international monetary policy.

The Chamber argues that the SEC’s refusal to engage in rulemaking or respond to blockchain’s petition has destabilized the regulatory environment for digital assets.

“Agencies ordinarily provide regulatory clarity by promulgating rules of general applicability,” the filing says. “This preference for rulemaking has important benefits: It forces agencies to put to paper their regulatory plans, and it provides for fixed, prospective effective dates that ensure parties can bring their conduct into conformance with the law rather than be held liable later for violating duties they did not know existed.”

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!