Author: Ethan Brady

July 19, 2023 – The Chamber of Digital Commerce opposes S.2355, the Crypto-Asset National Security Enhancement Act.  

The Chamber views it as an excessive and misguided approach to addressing security issues related to decentralized finance (DeFi) and Crypto Kiosks.  

Traditional financial systems have long been exploited for money laundering activities at a scale much larger than the nascent crypto sector. Therefore, while the digital asset industry welcomes strong, effective AML laws, it is crucial that these laws are proportionate and do not unfairly penalize the industry or inhibit innovation.  

“The Crypto-Asset National Security Enhancement Act of 2023 is a bad bill. As is, this bill is unworkable,” said Cody Carbone, Vice President of Policy at The Chamber. “We at The Chamber are committed to work with each individual bill sponsor to educate them so they can produce commonsense legal frameworks that protect consumers, U.S. national security, and deter bad actors without stifling innovation or infringing on privacy rights.” 

The Chamber maintains that the bill is technically unfeasible, excessively burdensome, and could potentially stifle the burgeoning digital asset industry in the U.S., harming not only the innovators in the field but also consumers seeking to leverage these emerging financial tools. 

A more balanced approach is to instead recognize and leverage the inherent transparency and programmability of blockchain systems, and work alongside industry experts to formulate a technologically sound, practical approach that supports both national security and the growth of the DeFi sector. 

**Chamber experts are available for comment.  

Contact press@digitalchamber.org to schedule an interview.**  

July 19, 2023 – The Chamber of Digital Commerce, the digital asset industry’s preeminent advocacy organization, proudly marks its 9th anniversary, marking nearly a decade of driving policy and regulatory initiatives to foster the growth and adoption of blockchain technology. 

Since its establishment in 2014, the Chamber has achieved significant milestones, playing a pivotal role in shaping the crypto policy landscape. Notable accomplishments include organizing the groundbreaking Bitcoin Education Day on Capitol Hill, providing influential testimonies before the U.S. Congress to endorse legislation supporting blockchain development, and spearheading impactful campaigns to safeguard citizens’ financial and online privacy rights by curbing harmful regulations.  

The Chamber has also been instrumental in advocating for a National Action Plan for Blockchain, publishing industry guidelines, and effectively influencing policy decisions, including the Travel Rule and Market Structure legislation. 

“I am immensely proud of our team and the remarkable progress we have made in the past nine years. This milestone is a testament to the dedication and expertise of our team, as well as the unwavering support of our esteemed members,” said Perianne Boring, Founder and CEO of the Chamber of Digital Commerce. “Looking ahead, we remain focused on our mission, leveraging blockchain’s transformative power to chart a path towards boundless possibilities and unlock a future of innovation and prosperity.” 

As we commemorate our 9^th anniversary, the Chamber recognizes our mission is ongoing. Our dedicated team persistently collaborates with legislators and regulators to shape the U.S. into a more accommodating environment for blockchain technology and digital asset innovation. 

With a diverse membership comprising over 150 members from technology and financial services backgrounds, the Chamber continues to drive industry collaboration and advocacy. The DC Blockchain Summit, the Chamber’s flagship event, will return in 2024, fostering greater collaboration between industry and policymakers in Washington, DC. For more information on Chamber membership and the DC Blockchain Summit, visit our website.  

For any press inquiries please reach out to press@digitalchamber.org.  

July 14, 2023 – The Chamber of Digital Commerce is pleased that there has been a ruling in SEC v. Ripple, applying the legal precedent set forth in the Chamber’s brief. 

This ruling comes after years of litigation, including The Chamber’s amicus brief filed in September 2022. In the amicus brief, The Chamber lays out the applicable legal precedent for initial offerings of digital assets and makes the court aware that no federal law (or regulation) governs the legal characterization of a digital asset recorded on a blockchain.  The Chamber also urges the court to clarify that the law applicable to an investment contract is separate and distinct from the law applicable to the subject of that investment contract. 

“The Court echoed key themes from the Digital Chamber’s amicus brief by unequivocally stating that a digital asset, like other tangible and intangible assets that may be the subject of an investment contract, is separate and apart from the investment contract itself, and does not embody an investment contract. While the Court did not directly render an opinion on secondary resales of digital assets, the opinion provides that certain sales of digital assets may not meet the ‘expectations of profits’ prong of Howey. The Court even cited the Judge’s opinion in SEC v. Telegram where the Digital Chamber played a critical role as amicus curie,” said Lilya Tessler, Partner and head of Sidley Austin LLP’s FinTech and Blockchain group. Lilya Tessler represented the Digital Chamber in filing the amicus brief in SEC v. Ripple and SEC v. Telegram. 

This ruling is a promising move as the digital asset industry is navigating in a lack of regulatory and legal clarity. Although this decision is a great first step, The Chamber looks forward to working with Congress in developing legislation that will help to reinforce and further define the points made in this ruling. 

 “This case is a big milestone in the process of setting clear and consistent sets of rules for our industry, and we are also encouraged by the legislation also in play,” said Perianne Boring, CEO and Founder of The Chamber of Digital Commerce. “The digital asset industry deserves a level playing field and we will continue to advocate for sound policy that promotes U.S. leadership in the digital economy.” 

** Chamber experts are available for comment. Email press@digitalchamber.org to schedule time to speak with our team. ** 

The U.S. Securities and Exchange Commission (SEC) recently reopened its proposal to expand the statutory definition of “exchange” to specifically encompass trading systems that trade crypto assets, including decentralized trading platforms.  As the leading voice for the digital asset and blockchain industry, the Chamber of Digital Commerce submitted a comment letter in response to questions raised in the reopening release. Our goal is to ensure that any final rules the SEC adopts specifically account for the unique attributes of blockchain technology and digital assets.

In our comment letter, we highlight the fact that the reopening release continues the SEC’s ill-fated attempt to regulate the activities of a disparate and dynamic group of persons from around the world utilizing open-source software, known as “automated market maker” (“AMM”) smart contracts, as a single securities intermediary.  The SEC’s proposed approach to include AMM software within the scope of these regulations without further consideration will deter innovation and disrupt the development and adoption of these technologies.

Our letter also points out that the Commission should identify specific crypto assets that it believes are securities as one component of any of AMM software regulation. This would allow users of these systems that engage in transactions in crypto assets to better understand when such transactions might trigger obligations under U.S. securities laws.  The vague language the SEC proposed could create uncertainty and confusion for industry participants, from software developers to DeFi protocol users.

The SEC’s economic cost analysis set out in the reopening release elicited many questions from a broad range of industry stakeholders. Indeed, the SEC itself acknowledges the possibility of decreased innovation due to uncertainty and compliance costs. We believe that the Commission’s economic assessment of the impact of the proposed rules on crypto trading platforms, and particularly on decentralized trading platforms, is clearly not based on accurate or reliable data and woefully underestimates the actual economic cost that the proposed rules would have on decentralized trading systems. In our view and the view of many others, a comprehensive and accurate economic analysis is a fundamental obligation for every SEC rule-making process and the SEC should be prohibited from adopting rules in cases where it fails to meet that burden.

The Chamber’s comment letter reflects our foundational desire for regulatory certainty and clear compliance standards that are appropriate for the nature of digital assets and blockchain technology, their benefits to users, and the potential risks they may present.  We believe in striking a delicate balance between prudent regulation and fostering innovation. The Chamber remains hopeful for further amendments to the proposed rules that encourage both consumer protection and technological progress, creating a sustainable roadmap for our industry.

As global economies increasingly embrace blockchain technology, the United States must ensure it does not lose its foothold in this innovative space. The Chamber of Digital Commerce is calling on Congress to act now, urging the formation of a dedicated Digital Asset and Blockchain Technology Solarium Commission.  

How would a Solarium Commission help digital assets and blockchain technology?  The original Project Solarium was created by President Eisenhower during the Cold War to develop a strategic approach to counter Soviet expansion. A similar approach was recently adopted in the form of the Cyberspace Solarium Commission, which successfully brought about significant, bipartisan cybersecurity reforms.  

A dedicated commission for digital assets and blockchain technology could provide the much-needed direction to create a comprehensive and strategic roadmap for the future of digital asset and blockchain development in the U.S. 

Blockchain technology, the backbone of digital assets, is rapidly transforming global industries – from finance to healthcare, to national security and arts. However, regulatory uncertainty in the U.S. restrains domestic innovation and development while other nations are capitalizing on the technology’s potential, setting their sights on becoming the pioneers in this digital revolution.  

Countries like South Korea are investing significantly into digital infrastructure, dedicating $44.6 billion to a “Digital New Deal”. Japan is fostering crypto adoption by drafting crypto-friendly laws, while Germany is evolving its financial landscape by allowing companies to issue crypto shares.   

Meanwhile, potential adversaries like China and Russia are harnessing blockchain to build their international influence. China is laying the groundwork for an internationally focused Blockchain-based Services Network (BSN), while Russia and Iran are contemplating a gold-backed crypto to bypass the dollar in bilateral trade.  

These advances pose a direct threat to the U.S.’s technological leadership and economic stability. Given the potential of blockchain and digital assets, the U.S. cannot afford to sit on the sidelines any longer.  

As other nations leap ahead, the time for the U.S. to take action is now. Our ask is clear – the Members of the 118th Congress must prioritize the creation of a Digital Asset and Blockchain Solarium Commission to safeguard the nation’s innovation and technological leadership. 

Thursday, June 8, 2023

Hire will accelerate expansion and strategic projects for premier trade group.

Washington, D.C. — The Chamber of Digital Commerce, the leading trade association advocating for the digital asset and blockchain industry, announced today that Alex Chizhik has joined the organization as its Chief Operating Officer.

“We are delighted to have Alex join our team. His expertise in operations, strategic planning, and scaling organizations will be invaluable as we work to accelerate the Chamber’s influence with lawmakers and our industry,” said Perianne Boring, Founder and CEO of the Chamber of Digital Commerce. “I look forward to working with him and seeing the impact he will have on the Chamber’s growth and success.”

Mr. Chizhik brings a proven track record of success in leading high-performing teams and scaling organizations. Most recently, he served as the Chief Operating Officer and Chief Revenue Officer of HarrisX (the top technology research company in the U.S.) and Global Head of Listings and Global Head of Public Affairs at Okcoin (a top U.S. regulated digital asset exchange).

“I am in awe of what Perianne and her team have created over the last ten years and am thrilled to join her and the Chamber of Digital Commerce,” Chizhik said. “The Chamber is rightly considered the premier trade group in educating policymakers about the digital asset ecosystem and advocating the necessary policies digital assets and blockchain need to grow. I look forward to playing a role in growing that influence and shaping the ongoing, productive dialogue with lawmakers and digital asset CEOs.”

Alex Chizhik’s role will include streamlining the operations of the Chamber and partnering with Ms. Boring to develop and take to market a series of strategic initiatives the Chamber will be rolling out over the next few months that are crucial to digital asset and blockchain innovation and growth. Stay tuned.

About the Chamber of Digital Commerce:

Founded in 2014, the Chamber of Digital Commerce is the original and preeminent digital assets trade association. With over 200 blue-chip members, the Chamber of Digital Commerce’s mission is to advance the United States’ interests in digital innovation, freedom, and adoption of digital assets and blockchain-based technologies. We work relentlessly to educate and assist policymakers and regulatory agencies, while advocating for the industry. Our goal is to develop a pro-growth legal environment that fosters innovation, jobs and investment.

To join the Chamber, please contact us at: info@digitalchamber.org or visit us at: https://digitalchamber.org/.

Today, the Chamber of Digital Commerce submitted comments to the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (Subtopic 350-60) Accounting for and Disclosure of Crypto Assets. For nearly a decade, the Chamber of Digital Commerce has advocated for setting clear accounting disclosure rules for crypto assets and this draft proposal gets us one step closer to the clarity our industry deserves. 

We are extremely appreciative of FASB’s willingness to collaborate with the Chamber and our membership to get to this point and we commend the Board’s efforts on these proposals and look forward to getting these rules over the finish line. 

“Clear and common-sense accounting and disclosure rules for crypto assets are essential to ensure transparency, protect investors, maintain market integrity, and promote the healthy development of the digital financial ecosystem,” said Perianne Boring, Founder and CEO of the Chamber of Digital Commerce. “ 

The proposed rules aim to better reflect the economics of the technology by measuring crypto assets at fair value, potentially reducing the cost and complexity associated with applying the current cost-less-impairment accounting model. 

The proposed rules would apply to crypto assets that meet all of the following criteria:

1. Meet the definition of intangible asset, which is defined as an asset that lacks physical substance. 
2. Do not provide the asset holder with enforceable rights to, or claims on, underlying goods, services, or other assets
3. Are created or reside on a distributed ledger based on blockchain technology
4. Are secured through cryptography
5. Are fungible
6. Are not created or issued by the reporting entity or its related parties.

What’s next?

The Financial Accounting Standards Board (FASB) follows several steps in its process of creating or updating accounting standards, including issuing an Exposure Draft. Now that the public comment period is closed, here are the steps FASB will take before updating the standards:

1. Review of Comments: After the comment period closes, FASB reviews and analyzes all feedback received from stakeholders. This feedback often comes from a wide range of sources, including businesses, auditors, industry groups, and academics.
2. Redeliberation: The FASB will consider all received comments and discuss them in public meetings. This process, known as redeliberation, can result in revisions to the proposed standard.
3. Issuance of Final Standard: If the FASB decides to proceed after considering public comments and conducting redeliberations, it issues a final Accounting Standards Update (ASU). This update represents the official, authoritative standard that entities must follow.
4. Implementation and Post-Implementation Review: After a new standard is issued, there is typically a period of time before it becomes effective, allowing entities to prepare for and implement the new guidance. FASB may also conduct a Post-Implementation Review (PIR) to assess whether the new standard is achieving its intended purpose.

The Chamber of Digital Commerce filed an amicus brief in Wahi asserting that the SEC has failed to give sufficient guidance on which digital asset transactions should be deemed ‘securities transactions,’ and that this SEC litigation is a misguided exercise in regulation by enforcement, which could significantly harm sectors of the digital asset industry and the investing public itself. We also noted that the SEC’s efforts are occurring at a time when the agency’s authority to regulate digital assets is being questioned by Congress.

While we appreciate that the SEC has agreed to abandon this dispute without any admission by the Wahi defendants that the digital assets themselves are securities under U.S. law, the crucial matters the Chamber raised in its amicus filing remain unresolved. Our industry requires certainty and clarity in the regulatory space, rather than enforcement actions that further undercut confidence and raise more questions among innovators and investors.