The U.S. Chamber of Commerce is demanding clearer regulations for cryptocurrencies and any activities related to them, including initial coin offerings (ICOs).
According to Forbes, the U.S. Chamber of Commerce — which represents large corporations alongside small and medium-sized businesses (SMBs) — requested regulations be created to promote responsible cryptocurrency-based business models, as well as new financial technology (FinTech) and innovation. The request comes as part of the new FinTech Innovation Initiative, which released its inaugural report last week, outlining FinTech policy and recommendations the group will be presenting to legislators and regulators.
“Regarding blockchain and cryptocurrency, we urge the [Securities and Exchange Commission (SEC)] to give more guidance on the treatments of tokens and initial coin offerings … to indicate whether a token is a security so companies can have more predictability and certainty in the marketplace.”
In addition, the Chamber would like to see greater use of specific relief for certain innovators through the use of no-action letters, which is, in essence, the guarantee that authorities won’t recommend enforcement actions against a company for a certain activity.
“We also urge the SEC to broadly consider and issue expedited no-action letters,” it wrote.
Other actions recommended by the Chamber include more regulatory efforts to study and understand blockchain and other financial technologies, as well as the deployment of “regulatory sandboxes” and officials from across the regulatory spectrum, coming together under the Financial Stability Oversight Council.
The group is also recommending that policymakers “[s]treamline the fragmented regulatory structure so any financial service provider that serves a national, multi-state market has one set of rules to abide by, instead of the complex state rules and multiple federal agencies,” noting that the existing framework is “impractical.”
The report said, “This conflicting patchwork has the potential to stifle innovation, limit market diversity and reach, and increase cost of credit that would impede growth and small business formation.”