- The Chamber of Digital Commerce filed an amicus curiae brief in the Kraken v. SEC case.
- The filing claimed that the SEC’s “aggressive approach” hinders blockchain innovation.
- Reasonable regulations could lead to economic growth and financial inclusion, according to the filing.
The blockchain trade association, The Chamber of Digital Commerce, has recently registered its protest against the U.S. Securities and Exchange Commission’s (SEC) lawsuit on crypto exchange Kraken by filing amicus curiae in response.
In a February 27 court filing, the Chamber of Digital Commerce clarified that the primary aim of the amicus brief is to limit the SEC’s attempt to regulate the digital asset industry through enforcement without getting authority from the legislation.
The Chamber of Digital Commerce stated on X that enforcement alone is not enough. The association noted that Congress is actively working on solutions, and the SEC’s “aggressive approach” hampers innovation. The Chamber of Digital Commerce added that fair and reasonable regulations can lay the foundation for economic growth, job creation, and financial inclusion.
Furthermore, the blockchain association strongly disapproved of the SEC’s claim that securities laws can be expanded as a framework to regulate all digital asset transactions, stating that this is “wrong as a matter of law.”
The Chamber of Digital Commerce maintained that digital assets are not inherently securities and expressed concerns that the SEC’s enforcement approach can be a threat to blockchain technology adoption.
Moreover, the association argued that such an approach could adversely impact the trillion-dollar digital asset space, which in turn would have an impact on the U.S. economy. To add to the argument, the Chamber cited the SEC’s past cases, including Ripple and Terraform Labs, where it failed to secure favorable decisions.Notably, in November 2023, the SEC filed a lawsuit against Kraken, and the exchange has consistently denied these accusations and filed a defense motion to dismiss the case on February 23.
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