The U.S. Chamber of Commerce began by saying that the U.S. lacks clarity on digital assets, while it is unclear how the SEC classifies them as securities under federal law.
This uncertainty has far-reaching implications for the crypto-asset industry, whose total market capitalization exceeds $1 trillion.
Despite the significant share of the crypto market in the economy, the SEC has failed to provide clear guidance to industry companies, continuing to take enforcement action against them without providing consistent and reasoned statements, the Chamber of Commerce noted.
The Chamber argues that the SEC’s reluctance to work through regulatory rules for the industry undermines current legal procedures and violates administrative law.
This only creates an unpredictable and unstable environment for industry companies.
Another key Chamber of Commerce argument is that the uncertainty of cryptocurrency regulation is holding back innovation in the United States.
Without clear guidance on which digital assets are considered securities, companies are wary of developing the latest technology in the country, which hinders the development of the sector.
The Chamber of Commerce also argues that the SEC violates “constitutional guarantees of due process and fair notice procedures.”
By failing to provide clear guidance, the SEC limits the ability of federal courts to review and challenge the agency’s arguments, further exacerbating regulatory uncertainty and casting doubt on the fairness of court decisions.
The cryptocurrency community believes that the involvement of a major organization like the U.S. Chamber of Commerce will help bring clarity to oversight of the industry, as well as take a step toward resolving the SEC’s differences with cryptocurrency issuers and cryptocurrency exchanges.
Recall that last week, the U.S. Court of Appeals for the Third Circuit ordered the SEC to answer Coinbase’s questions about cryptocurrency regulation.