US legislatures could take an important step forward with the adoption of targeted cryptocurrency legislation.
The European Union’s regulatory framework for cryptocurrencies is moving forward with the goal of becoming a valuable model for US legislators. However, it is a matter of curiosity whether the legislation will be a security token or a utility.
Crypto Legislation That The US Has Been Working On For A Long Time May Move The Stones
It is predicted that the publication of crypto legislation that US regulators are working on can change many balances in the industry. However, the SEC’s stance on pending lawsuits is also expected to change.
Coinbase has been fighting the SEC for over a year now. However, it forces the agency to set clear digital presence rules. After the company failed to receive a response to its original petition filed in July 2022, it filed a complaint in the U.S. Third Circuit Court of Appeals for “unreasonable delay” and filed another petition in April. This latest post from Coinbase has also received support from institutions in the US, including key industry endorsements such as the US Chamber of Commerce (USCC).
Last week, we called on Washington to adopt a comprehensive framework for #digitalassets. @Blockworks_ featured our call for a Digital Asset & Blockchain Technology Solarium Commission. Take a peek! 👀https://t.co/VKiLyaZSXl
— Chamber of Digital Commerce (@DigitalChamber) May 23, 2023
Regarding the announcement, the USCC wrote in an amicus curiae briefing dated May 9, 2023:
“No one knows for certain which digital assets would be considered ‘securities’ under federal law. This is an important question because the cryptocurrency industry has become a $1 trillion industry, and most USCC members are companies subject to US securities laws.”
The USCC stated that these companies “have a great interest in regulatory clarity.” However, the SEC had declared itself as the chief regulator of digital assets.
The Crypto Council also discussed the issue with an amicus briefing in May, accusing the SEC of putting pressure on individual firms instead of declaring clear rules. According to the Crypto Council, regulation through sanctions hinders meaningful participation in the agency’s decision-making process, deprives market participants of fair reporting, and cools innovation and investment in the digital asset space.
