The Crypto Roundup: 12 May 2023 | CryptoCompare.com

The Crypto Roundup: 12 May 2023 | CryptoCompare.com

Time Stamp: May 12, 2023 5:43 AM
Source Node: 2645816

In a surprising move, the U.S. Chamber of Commerce, a formidable force in American corporate advocacy, has taken up arms for digital asset industry players who have been vocally critical of U.S. regulatory approaches.

The Chamber has thrown its considerable weight behind the legal challenge brought against the Securities and Exchange Commission (SEC) by Coinbase, which came as Coinbase asks the SEC to clarify its rules for the industry.

In its own court filing, the Chamber argued that the SEC’s perceived inaction in response to Coinbase’s request is resulting in “substantial economic harm” to both the company and the broader business community.

The Chamber has publicly criticized the SEC’s enforcement action against the staking-as-a-service offering operated by Kraken. Kraken reached a settlement with the SEC and subsequently discontinued the service in the U.S. This development has led many to speculate that the SEC’s actions may drive crypto firms away from the U.S.

The Chamber also expressed strong disapproval regarding  the regulatory ambiguity surrounding the second-largest cryptocurrency by market capitalization, Ether (ETH), as the SEC’s position on it seemingly changed with Chair Gary Gensler.

Gensler’s predecessor, Jay Clayton, saw the SEC regard ETH as sufficiently decentralized not to be classified as a financial security. Gensler has hinted it’s no longer using this interpretation but refrained from sharing a new interpretation publicly.

In its submission to the court earlier this week, the Chamber aligned itself with one of the arguments put forth by Coinbase in its own legal challenge, suggesting that the SEC may have already reached a conclusion on whether to issue a regulation but has refrained from formally acknowledging this decision.

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