US Chamber Of Commerce Calls For Regulatory Clarity On Crypto And ICOsbr>
The US Chamber of Commerce is demanding clearer regulations for cryptocurrencies and activities they can be used for, such as initial coin offerings (ICO).
Founded in 1912, the US Chamber of Commerce is the world’s largest business organization representing the interests of more than 3 million businesses of all sizes, sectors, and regions. It promotes pro-business issues via lobbying efforts at the national level. They do not have a direct role in creating laws or regulations, though they may be effective in influencing regulators and legislators with their organized lobbying efforts.
As part of its recently launched FinTech Innovation Initiative, the Chamber requested tailored oversight and strong consumer and investor protections to promote responsible crypto business models, as well as new financial technology and innovation.
“We urge the Securities and Exchange Commission (SEC) to continue studying ICOs to see how they can be an effective tool for raising capital, while protecting investors and ensuring applicable laws are met,” the Chamber said. “We also urge the Commodity Futures Trading Commission (CFTC) to study how cryptocurrency is functioning in the futures and commodities market. In both cases, we urge the agencies to regulate the products and services enabled by the technology instead of the technology itself.”
As the crypto industry rapidly evolves, the Chamber said it is critical that both the SEC and CFTC are mindful of the fast moving pace of technology, create streamlined processes to assess the tokens, and be prepared to issue relief so regulatory hurdles do not become a barrier to entry.
“We urge the SEC to give more guidance on the treatments of tokens and ICOs to indicate whether a token is a security so companies can have more predictability and certainty in the marketplace,” the Chamber said. “We also urge the SEC to broadly consider and issue expedited no-action letters. Moreover, we urge the SEC to expand the definition of accredited investor to include those with experience or educational backgrounds that demonstrate subject matter expertise to broaden smaller-dollar, main street investments.”
The Chamber said this that this approach would alleviate contradictory and overlapping rules, and allow institutions to focus on what really matters – reducing consumer risk and preventing fraud.
“The speed of innovation is not slowing anytime soon and will only likely increase in the years to come. It is critical the US government and states encourage these innovations that will shape the economic landscape and transform our daily lives. We urge the US government to lead this digital transformation, and promote economic growth, to ensure the US maintains a competitive advantage on the world stage and plays a key role in the development of global financial policy,” the Chamber concluded.