Currently, the crypto sector is being targeted by the SEC. One after another, companies and cryptocurrencies are being sued by the US commission, which seems to want to put a spoke in the wheels of the entire industry at all costs.
Is this an attempt to protect consumers? Or perhaps the institution only aims to demolish the Web3?
In the game involving millions of investors, as well as cryptographic companies and the US regulator, a big player comes into play: the US Chamber of Commerce. And, dulcis in fundo, it seems to be siding with cryptocurrencies.
Let’s see what happened in detail.
The US Chamber of Commerce
There are some government bodies that are more than just important, perhaps crucial. One of these is definitely the US Chamber of Commerce.
Founded in 1912, it is the largest business federation in the world, representing nearly three million companies, 2,800 state and local chambers, 830 business associations and over 100 American Chambers of Commerce abroad.
Headquartered in Lafayette Square by the White House in Washington, DC, the institute’s mission is to fight for the interests of business and free enterprise before Congress, the White House, regulatory agencies, the courts of public opinion, and governments around the world.
Which brings us to the US battle of 2023: the battle for crypto.
SEC versus all in 2023
It seems that in 2022, the activities of the US Securities and Exchange Commission will have increased its lawsuits in the crypto sector by about 50 per cent.
Cases filed against cryptocurrencies were reportedly more than 30 last year, including the most famous one against Sam Bankman-Fried, the former CEO of the fallen FTX.
However, the SEC has pushed the accelerator even further by filing lawsuits against several crypto providers: Genesis, Kraken, Coinbase, Binance, and Justin Sun (creator of Tron) to name but the most famous.
This has not helped the industry at all, which finds itself immobilised by the uncertainty in the sector. And this is where an unexpected participant comes in. This time in favour of cryptocurrencies.
No more waiting, cryptocurrency regulation urgently needed
Recently, it seems that even Coinbase has rebelled against the commission’s overkill on the entire industry by filing a lawsuit against the Securities and Exchanges Commission in turn.
Moreover, the latter is facing criticism from the US Chamber of Commerce for its lack of clarity regarding which digital assets are securities under federal law.
This issue is of high importance given the trillions of USD involved and the millions of people who trade on them.
According to the filing, the SEC has refused to engage in any systematic or regulatory process to explain what its purported authority means. Instead, offering one-off enforcement actions and public discourse. This has created regulatory uncertainty and destabilised the regulatory environment for digital assets.
This could be a serious problem for the credibility and sustainability of SEC cases against cryptocurrencies and the companies sued with them.
Chamber of Commerce crushes SEC
The case of one of the world’s most important crypto exchanges has undoubtedly allowed a very important element to come to the fore in favour of the industry.
In July 2022, Coinbase petitioned the SEC to initiate regulation of cryptocurrencies. It urged the Commission to answer fundamental questions such as “what digital assets are securities?”
More than 1,700 commentators echoed Coinbase’s call, but the institution expressed no interest in addressing the company’s request, according to the US Chamber of Commerce.
Coinbase has therefore filed a lawsuit against the SEC to force the regulator to act, which is where the Chamber itself stepped in.
Problems for the SEC?
It seems clear that the US Chamber of Commerce finds the Securities and Exchanges Commission’s attitude towards crypto inappropriate.
The body is not unimportant and has even sent a document claiming that the SEC has acted illegally with the cryptocurrency industry and that this is causing regulatory uncertainty and hindering innovation.
These actions are destabilising constitutional due process by proving to be not only damaging to policy, but also illegal, and the results of the commission’s continued delay on possible clear regulation do not make things any better.
The aid comes at the right time for digital currencies and could have a profound impact on the regulatory environment, as it demonstrates support for the cryptocurrency industry from one of the most significant and influential business organisations in the US.
It could also lend more credibility to the claims of cryptocurrency supporters against their counterparts, who may now have a really hard time making their case.