The U.S. Securities and Exchange Commission (SEC) suffered another blow when the Chamber of Commerce filed a comment on the SEC-Coinbase lawsuit.
The U.S. Chamber of Commerce, which represents about 3,000 businesses, recently submitted a memorandum supporting Coinbase. at shortThe chamber says the SEC is acting illegally in the cryptocurrency industry.
1/ BREAKING NEWS: The U.S. Chamber of Commerce just submitted its report. @Coinbase v. The SEC case accuses the SEC of “illegal” conduct 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 report highlighted the implications of the lack of a clear regulatory framework for the trillion-dollar cryptocurrency industry to operate. The report noted the lack of federal laws to assess the security posture of digital assets.
It also said that despite its significant size, the SEC has failed to provide guidance to the industry, rather continuing to enforce regulations through enforcement policies and making vague public statements.
The chamber said the SEC’s unwillingness to develop industry-specific regulations violates principles of good governance, administrative law and due process. The briefing mentioned the strong regulatory uncertainty and technological innovation in the United States. Uncertainty about the security status of digital assets makes businesses hesitant to explore new technologies, which negatively impacts their growth and development.
The brief argued that the SEC’s actions have created an unpredictable environment for the industry, making it more difficult to make informed decisions. The Chamber of Commerce also claimed that the agency violated the ‘constitutional right to due process and fair notice.’
Specifically, the Chamber filed a brief in the case it brought against Coinbase against the SEC for failing to respond in a timely manner to the company’s claims. In the last week of April, the court asked the SEC to file a response to Coinbase’s claims within 10 days.
It is also worth noting that Ripple CEO Brad Garlinghouse has previously highlighted several times the implications of the lack of a clear regulatory framework.