SEC continues to face increasing criticism from various entities across the world and the US.
The US Chamber of Commerce, the largest lobbying group in the United States, criticized the Securities and Exchange Commission's (SEC) disorganized regulation of the domestic cryptocurrency industry.
On May 9th, the lobbying group filed an amicus brief to the US Court of Appeals, where the organization backed the crypto exchange Coinbase. It is worth noting that, in March, SEC issued Coinbase a Wells Notice over alleged securities law violations.
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On top of that, the organization accused the SEC of creating an uncertain environment for crypto companies in the country.
The SEC has deliberately muddied the waters by claiming sweeping authority over digital assets while deploying a haphazard, enforcement-based approach.
The Chamber of Commerce argued that the SEC's erratic approach to regulating digital assets was intentional and not a mere coincidence.
The organization further urged the SEC to promptly address Coinbase's April 25th complaint, which seeks to force the regulator to respond to its "petition for rulemaking" and provide clear guidelines for crypto firms in the US.
The Chamber of Commerce stated that the SEC's "refusal" to respond to Coinbase or engage in any rulemaking is not only harmful but also unlawful.
The SEC’s actions are not just harmful policy; they are unlawful; and the consequences of the SEC’s continued delay are severe for that reason too.
Furthermore, it pointed out that the financial regulator has failed to clarify which of the roughly 20,000 digital assets in existence should be considered "securities" under Federal Law.
Remarkably, the Securities and Exchange Commission — despite proclaiming itself the primary regulator of digital assets — has refused to resolve this threshold question.
The SEC's handling of cryptocurrency regulation has faced widespread criticism, and a resolution is necessary to foster a stable environment for the industry to thrive.