Advocacy Group Pushes for Changes in Crypto Policies

Jimmy Aki
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The Digital Chamber of Commerce, a leading voice in the crypto industry, has called for an immediate overhaul of the United States Securities and Exchange Commission’s (SEC) crypto policies.

Advocacy Group Urges Review of Crypto Policies

The group recommends a comprehensive review of ongoing lawsuits, investigations, and enforcement actions as a step toward repairing the regulator’s strained relationship with the digital asset sector.

In a December 18 statement, the Chamber’s Token Alliance highlighted the need for trust between regulators and the crypto industry.

“We need to foster a culture of mutual trust — where the digital asset industry can have confidence in the SEC’s intentions, and the SEC can recognize that most digital asset participants are striving to operate responsibly,” the group said.

The SEC’s current legal battles include high-profile cases against Binance, Coinbase, and Ripple. It has also issued Wells notices to other projects, such as Uniswap and Immutable, sparking concerns about the future direction of crypto policies in the United States.

One of the advocacy group’s main recommendations is to end the SEC’s reliance on enforcement actions as a regulatory tool.

Replacing Enforcement with Clear Guidelines

The Chamber also proposed repealing the SEC’s 2019 framework for applying the Howey test to digital assets. It argued that the framework and the controversial 2018 Hinman speech created an uneven playing field in the industry.

The group further criticized Staff Accounting Bulletin 121 (SAB 121), which requires crypto custodians to record their holdings as liabilities. According to the Chamber, this rule burdens market participants and risks driving investors offshore.

House Representative Wiley Nickel has echoed similar concerns, warning that SAB 121 could push U.S. investors to “riskier custodial solutions.” A bill to repeal the rule gained bipartisan support but was vetoed by President Biden earlier this year.

The impending leadership transition at the SEC offers a chance to reset its approach. Current SEC Chair Gary Gensler, who has faced criticism for his enforcement-heavy tactics, will step down on January 20.

Paul Atkins, a former SEC commissioner and a current advisory board member of the Digital Chamber, is expected to succeed him.

The Chamber has proposed that the new SEC leadership withdraw its proposed Rule 3b-16, which would expand the definition of “exchanges” to include decentralized finance (DeFi) protocols. Critics argue this change would overburden emerging technologies with unnecessary regulation.

Token Alliance representatives recently met with SEC commissioners Hester Peirce and Mark Uyeda to present their recommendations.

The call to reform crypto policies shows the growing need for a balanced regulatory approach. The SEC has also reaffirmed its focus on regulating the crypto market in its recently announced 2025 examination priorities.

The agency highlighted plans to scrutinize crypto asset activities, including offering, selling, and trading related products.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.