The main problem with regulating digital assets in the US is that the authorities are trying to do so with laws from 1933. This is the Securities Act, which barely includes cryptocurrencies.

However, the US Securities and Exchange Commission is not embarrassed by this. The agency’s leadership does not want to develop an adequate regulatory framework, but instead only terrorizes various cryptocurrency companies by inviting them to court.

And such activities are continuing even now. This week it became known that Marathon Digital, a US mining company, received a subpoena from the SEC. As the sources noted, in this case the regulator “may investigate whether there have been any violations of federal securities law there”.

What the SEC was sued for

The bottom line is that Coinbase now has the backing of one of the largest business organisations in the world. According to Decrypt’s sources, the US Chamber of Commerce represents more than 3 million businesses and organisations across the country, from small businesses to global corporations.

The USCC believes that the US Securities and Exchange Commission is purposely avoiding clarity in crypto regulation for the sake of pressuring the industry. Here’s a quote to that effect from the Chamber of Commerce’s petition to the court, which is handling Coinbase’s case against the SEC.

The SEC is deliberately “muddying the waters” by claiming broad authority over digital assets while taking a haphazard enforcement approach. This regulatory chaos has arisen by design, not by accident.

Note that the allegedly pre-planned actions by US authorities against the cryptocurrency industry were previously described by investor and Galaxy Digital executive Michael Novogratz. According to him, all such actions against crypto exchanges, companies and other representatives of the digital asset industry are coordinated at the highest level. Read more about the expert's point of view in a separate article.

Note that Coinbase is not asking the court to force the SEC to adopt new rules for digital assets. The exchange first and foremost wants a response to its request – and that is its legal right. At issue is exactly how cryptocurrencies should be classified, i.e. whether they should be considered securities or commodities.

Coinbase has a good reputation for transparency in its operations. Moreover, it is the first cryptocurrency exchange to be publicly traded on Nasdaq. However, Coinbase had previously received a Wells Notice – a hint from the US Securities and Exchange Commission that the regulator could soon file a lawsuit against the exchange for allegedly distributing unregistered securities.

In light of these developments, representatives of the US Chamber of Commerce shared the following rejoinder.

Securities Commission officials resorted to regulation through enforcement and thus deprived the public of the opportunity to monitor their actions in a Great Depression-era format against the multi-billion dollar industry. This deprives the entire public of the right to be heard.

In other words, the Commission is being accused of breaching market regulation as well as overly aggressive policy, which leaves no room for criticism of the SEC’s actions. Earlier the chairman of the regulator Gary Gensler was criticized in the US Congress on similar points. And he failed to respond adequately to the authorities’ questions, which is generally typical of Gensler.

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Uncertainty has also become synonymous with the state of the banking sector in the US, which has been in serious crisis over the past few months. Not so long ago another major bank called First Republic Bank collapsed. As a result of the situation under supervision of governmental bodies, its assets are taken over by the banking giant JPMorgan.

JPMorgan chief executive Jamie Dimon has now said banks have not yet weathered the peak of the crisis. According to him, the US Federal Reserve needs to take emergency measures to save the situation, reports Cointelegraph. But at the same time, the Fed can’t go for tighter regulation – it will only bring the worst-case scenario closer for the banks.

Here’s a relevant rejoinder from the expert.

At some point it gets harder to do business. There are already hundreds of banking regulations in place.

How will all this affect Bitcoin? It’s a bit early to make global predictions yet, but at the start of the banking crisis in March, BTC rose markedly in value and solidified its own reputation as a safe vault of value. Obviously, it was the investors’ reaction – they used crypto as a reserve asset to “insure” some capital against problems in economy. As you can understand a few weeks later, this was a pretty good decision.


Coinbase's support from the US Chamber of Commerce is a good sign for the prospects of the cryptocurrency industry. It makes it clear that the inadequacy of the SEC's actions is not only clear to the digital asset niche. And since the problem is clear, we have to work hard to solve it. In this case, we should hope that other authorities can remind Gary Gensler about the meaning of the SEC.


Stay tuned for more developments on our cryptochat of ex-rich people. There we hope for the onset of a new bullrun, which in theory could be even bigger in the background