The US Chamber of Commerce has voiced its support for Coinbase, a popular cryptocurrency exchange, in its ongoing legal battle with the US Securities and Exchange Commission (SEC). The Chamber of Commerce filed an amicus brief in the Coinbase vs. SEC case, stating that the SEC’s lack of response to Coinbase’s petition for regulatory clarity is causing substantial economic harm to Coinbase and the broader business community, media reports said.
The amicus brief argues that the digital asset industry offers a case study in how regulatory uncertainty undermines innovation, citing the fact that the industry grew quickly, reaching a trillion dollars in market capitalization by early 2021, before the SEC began rattling its saber.
The Chamber of Commerce further stated that Americans lose out on the practical benefits that digital asset products can provide, such as making the financial system more inclusive for the previously unbanked.
The SEC issued a Wells notice to Coinbase in March, alleging that the exchange violated laws around its spot market, staking service, Coinbase Prime, and Coinbase Wallet.
Coinbase had petitioned the SEC last summer to give the digital asset sector a clearer idea of the regulatory approach, but the SEC has shown no interest in addressing Coinbase’s concerns, according to the amicus brief.
The Chamber of Commerce is the world’s largest business organization, and its members have a strong interest in regulatory clarity. The SEC’s actions could have broader implications for the general economy and could also impact strategy and interests, the brief argues.
The Chamber of Commerce further stated that by focusing on regulation by enforcement, the SEC is not testing its legal claims in court, leaving companies to accept the risk of future litigation or stop engaging in conduct that the agency might or might not ultimately target.
