Advancing Regulatory Clarity for Digital Asset Designation
We’re advocating for clarity and providing Congress with the educational tools to resolve the regulatory turf war between the U.S. Securities and Exchange and Commodity Futures Trading Commissions over jurisdiction of the digital asset ecosystem.
The U.S. regulatory system was not originally designed for digital assets, leading to a situation where regulators are forced to fit these new technologies into existing frameworks—a classic case of trying to fit a square peg into a round hole due to the absence of a clear, U.S.-specific regulatory framework.
We must shift perceptions, underlining the maturity, potential, and resilience of digital asset markets. By presenting compelling, data-backed evidence of the benefits and security of crypto investments, we drive the conversation towards efficient and clear SEC approvals.
The Policy Issues
Resolving Security vs. Commodity Designation of Digital Assets
Facing the challenges of a murky regulatory environment for digital assets, we are advocating for clear disclosure standards to differentiate between securities and commodities in the digital token space. This initiative aims to simplify the complex landscape, promoting transparency and protecting investors. By establishing detailed guidelines, The Digital Chamber seeks to foster trust between investors and digital asset issuers, clarifying the classification and regulation of digital tokens.
- Lejilex v. SEC | July 2024
- SEC v. Kraken | February 2024
- SEC v. Binance.US | October 2023
- SEC v. Coinbase | August 2023
- SEC v. Wahi | February 2023
- Statement on SEC v. Wahi | June 2023
- SEC v. Ripple | September 2022
- Explainer: SEC v. Ripple Ruling: Impact and Analysis | August 2023
- SEC v. Telegram | January 2020
- Standing Against SEC Overreach: Defending DeFi Innovation and Financial Inclusion | July 2024
- TDC Applauds House Passage of the FIT for the 21st Century Act | May 2024
- TDC Condemns SEC’s Latest Regulatory Overreach Following Wells Notice to Robinhood Crypto | May 2024
- Chamber Applauds Grayscale Decision | August 2023
- Filecoin Should Not Be Regulated as a Security | June 2024
Market Structure Legislation
The rapidly evolving digital asset market urgently requires tailored market structure legislation in the United States to ensure robust, transparent, and effective regulation. Recognizing that many digital assets function similarly to commodities, it is imperative to empower the Commodity Futures Trading Commission (CFTC) with enhanced regulatory authority.
This shift would align oversight with the nature of the assets and promote market integrity. Additionally, by establishing a safe harbor provision, the legislation would support issuers and projects in their transition towards decentralization, fostering innovation while providing necessary protections.
We are in strong support of the FIT for the 21st Century Act, as it represents a forward-thinking approach that accommodates the unique aspects of digital assets, ensuring that the U.S. remains a leader in the global digital economy.
- Call to Congress to Prevent SEC Overreach | November 2023
- Statement in Support of the Financial Technology Protection Act | October 2023
- Chamber Statement on Digital Asset Market Structure Draft Legislation | June 2023
- House Passes Bill to Create SEC-CFTC Working Group to Foster Digital Asset Innovation | April 2021
Our Impact
Through strategic advocacy, we’ve achieved milestones that promote regulatory clarity and support the growth of the digital asset industry.
Legal Advocacy Success
Successfully advocated for the digital asset industry in multiple amicus briefs, including SEC v Ripple where the District Court accepted all recommendations from our Amicus Brief, establishing crucial regulatory clarity for secondary trading.
Bipartisan Clarity
Campaigning for bipartisan legislation, the Token Alliance leads legislative drafting discussions with lawmakers and staff to advance key bills such as the FIT for the 21st Century Act and Clarity for Payment Stablecoins Act, increasing clarity for market participants and ensuring the industry has a seat at the table.
Relevant Digital Asset News
