Chamber of Digital Commerce challenges SEC’s insider trading case against former Coinbase employees

02/23/2023 06:23 • Daily Digest • 103 views

It is reported that in a non-party opinion statement submitted to the court, the Chamber of Digital Commerce, headquartered in the United States, believed that the insider trading case of the United States Securities and Exchange Commission (SEC) against the former employees of Coinbase should be rejected, because it represents the expansion of the enforcement and supervision movement of the United States Securities and Exchange Commission, and tried to characterize the secondary market transactions of cryptocurrency as securities transactions. The Digital Chamber of Commerce stressed that the US SEC had never been authorized by Congress to invade the digital asset market, and pointed out that in other cases of the Supreme Court, regulators must first be authorized by Congress.

American Digital Chamber of Commerce: The SEC’s insider trading case against former employees of Coinbase should be rejected

Interpretation of the news:

The Chamber of Digital Commerce, a US-based organization focused on advancing the blockchain and digital asset industry, has issued a non-party opinion statement to object to the insider trading case of the United States Securities and Exchange Commission (SEC) against former employees of Coinbase. The organization believes that the case should be rejected as it represents an expansion of SEC’s enforcement and supervision movement, and an attempt to categorize secondary market transactions of cryptocurrency as securities transactions.

The Chamber of Digital Commerce argues that the SEC has never been authorized by Congress to regulate the digital asset market. The organization refers to previous Supreme Court cases where it was stated that regulators must first be authorized by Congress before they can take any action. Therefore, SEC’s attempts to define cryptocurrency transactions as securities would be beyond its legal limits without authorization from Congress.

The Chamber of Digital Commerce further argues that the SEC’s lawsuit could create negative impacts on the entire digital asset industry, especially when cryptocurrencies are still facing regulatory uncertainties. By using the insider trading case as a way to expand SEC’s power, the organization fears that the move could invite more legal challenges and hamper innovation.

The organization suggests that SEC should work together with the industry to establish new regulatory frameworks that could foster innovation while avoiding hindering cryptos. Instead of using lawsuits to expand its regulatory power, the SEC should focus on educating investors, building public trust, and collaborating with stakeholders to promote compliance and better industry development.

In conclusion, the Chamber of Digital Commerce’s statement serves as a challenge to SEC’s authority and regulatory approach towards the digital asset market. The organization’s argument focuses on the need for clear regulatory guidelines instead of expansion of regulatory authorities through a lawsuit. The case underscores the complexities and uncertainties of regulating the emerging blockchain and digital asset industry, which requires more comprehensive coordination and cooperation between regulators and the industry itself.

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