Beyond Merit

The Digital Chamber’s Latest Report Exposing the SEC’s Historical Overreach in Digital Asset Regulation

For nearly a decade, the SEC’s Division of Investment Management limited registered investment companies from offering exposure to bitcoin and other digital assets. Beyond Merit: How the SEC’s Division of Investment Management Blocked Permissible Investments in Digital Assets exposes how the principles of Operation Chokepoint 2.0, put into play under the prior administration, were also implemented within the SEC. Through these actions, the SEC exceeded its authority by acting as a merit regulator, limiting investments by registered investment companies based on an inherent bias against digital assets rather than established rule, statute, or law. As a new majority takes the helm at the SEC, we are already seeing a willingness to address this prior inherent bias against the digital asset industry. We hope that this report assists the new SEC majority in these efforts.