“Illegal SEC Actions”: Why the Chamber of Commerce Supported Coinbase Matters

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In April, Coinbase took the bold step of suing the Securities and Exchange Commission.
The cryptocurrency exchange has now received support from one of the most influential business organizations in the world.
The latest support could have big impacts beyond status.

Market participants and legislators described the state of crypto regulations in United State hostile and confusing.

in April, Coinbasewhich is widely considered to be the largest cryptocurrency exchange in the United States, Taking the US Securities and Exchange Commission to court Hoping to remove this ambiguity that persists Drive business abroad.

Coinbase has now received support from one of the most influential business organizations in the world, which could have huge potential implications.

US Chamber of Commerce files Amicus brief in support of Coinbase

The US Chamber of Commerce chose to support Coinbase in its lawsuit against the Securities and Exchange Commission in an amicus brief foot On Tuesday, May 9th.

A friend’s brief is a legal document submitted by entities that have a strong interest in a case to which they are not a party.

“The chamber’s members have a keen interest in regulatory clarity, and many of its members are firms subject to US securities laws that may be adversely affected by the SEC’s current approach to digital assets,” the chamber’s brief stated.

The organization, which represents about 3 million companies, argued that the Securities and Exchange Commission’s (SEC) delay in responding to Coinbase’s July 2022 request to clarify what digital assets constitute securities has stifled economic growth and innovation and hurt the regulatory landscape for cryptocurrencies.

The business advocacy group also criticized the SEC’s campaign of regulation through enforcement in the absence of clear guidelines as “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," the Chamber argued.

On May 4, the court was significantly Grant The Securities and Exchange Commission has ten days to respond to the Coinbase petition. While experts initially argued that the markets regulator still had room for fidgeting to delay its response, the latest amicus brief decrying the SEC’s delay could throw a dent in any such plans with broader implications.

Abstract effect

Securities attorney James “MetaLawMan” Murphy confirmed on Twitter Thursday, May 11 that the chamber’s arguments could greatly influence the courts in the legal battle.

“These arguments made by the US Chamber of Commerce will be given serious consideration by the Court,” Murphy wrote on Twitter.

5/ Conclusion:
The Court will give serious consideration to these arguments made by the American Chamber of Commerce.
And
The largest and most influential business organization in the United States has announced that it stands with cryptocurrency.
– MetaLawMan (MetaLawMan) May 11, 2023

Former SEC regional director Mark Fagle posited that the impact could be greater in political circles than in the courts, adding that it could also force the SEC chairman. Gary Gensler to consider setting the rules.

"The amicus brief itself shouldn't impact any pending (or expected) enforcement actions. But it's one more political prompt for Congress to intervene; and I suppose could politically prompt GG to more seriously consider rulemaking (but I think that will take a court loss)," the former SEC enforcement officer tweeted.

ConsenSys Attorney Bill Hughes told DailyCoin that while friends’ briefs often have little effect on court decisions, it can be beneficial to get briefs from notable organizations such as the Chamber of Commerce.

“It’s good that they have spoken out here for a government agency that is responsive to the public and the business community,” Hughes noted.

“I hope this signals more indigenous non-crypto entities standing shoulder to shoulder with the cryptocurrency ecosystem as they have to go to federal courts for verification from a gleefully hostile administration.”