The Chamber of Digital Commerce, a blockchain support group based in Washington, has filed an amicus curiae brief in the SEC v Payward, Inc. (Kraken) case. The group argues that the SEC’s actions raise concerns of “separation of powers and equal treatment” and that digital assets are not necessarily investment contracts.
Chamber of Digital Commerce Trade Hammers SEC Stance in Kraken Amicus Report
It seems that The Chamber of Digital Commerce has submitted an amicus curiae document in support of Kraken, a U.S.-based cryptocurrency exchange, in its legal dispute against the U.S. Securities and Exchange Commission (SEC).
The event aimed at promoting the acceptance and usage of digital assets and blockchain-based technologies argued that the SEC’s actions are incorrect on two different points. They believe that the regulator’s stance is hindering innovation and could potentially impede the development of a robust cryptocurrency industry as a part of the U.S. economy.
Despite the SEC’s interpretation of “speculation contract,” the Office of Trade believes that “digital assets are not securities.” They argue that these assets are essentially just lines of computer code. Citing various laws, the Office of Trade states that there is regulation supporting this claim and that the decision to determine whether an exchange or arrangement is an “investment contract” should be evaluated on a case-by-case basis.
The amicus curiae argues that digital money guidelines should be subject to the “significant inquiries tenet” due to their importance in the U.S. economy. This principle establishes that Congress has authority over a company if a case is “exceptional” and represents both “economic and political importance.” The chamber believes that blockchain technology would fall under this principle due to its increasing prevalence and financial significance.
It is recommended that the SEC should adopt Congress’ policies on the matter and refrain from regulating the entire cryptocurrency industry through enforcement measures. Coinbase, a US-based cryptocurrency exchange currently facing legal action from the SEC, has argued that the major questions doctrine should apply to the cryptocurrency industry. This would prevent the SEC from exerting any authority until Congress establishes clear guidelines.
Finally, the chamber has stated that the SEC has failed to provide clear guidance or a defined strategy for individuals in the industry to determine if an asset is a security or not, regardless of whether the significant inquiries principle applies to crypto-as-securities regulation. The SEC’s rule-by-enforcement approach lacks transparency and fails to offer fair notification.
Read more.
CoinMarketCap Analysis: How BitTorrent Chain is Making Waves in Crypto
Ice Network: Biggest Scam of Crypto World
