YEREVAN (CoinChapter.com) — The Digital Chamber of Commerce has called on the incoming SEC leadership to review all existing crypto-related investigations, Wells notices, and ongoing SEC lawsuits from the new administration’s first day. Through its Token Alliance, the Chamber emphasized the need to reset what it referred to as the SEC’s “troubled relationship” with the digital asset industry.
The Token Alliance, which includes Paul Atkins, the nominee for SEC Chair, as an advisory board member, released a statement on Dec. 18.
“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 stated.
Currently, the SEC is involved in big legal battles with major industry players such as Binance, Coinbase, and Ripple, among others. Wells notices have also been issued to companies like Uniswap and Immutable, with outcomes likely to affect the broader digital assets sector.
Chamber Pushes SEC to Pause Probes and Repeal Key Crypto Rules
The Chamber proposed halting certain SEC crypto probes and lawsuits that do not involve fraud, investor loss, or imminent harm. This pause, they argued, would allow the SEC time to finalize a consistent regulatory approach.
The group also urged the SEC to revoke its 2019 framework for applying the Howey test to digital assets. It criticized the reliance on the controversial Hinman speech, which has played a significant role in crypto-related investigations. According to the Chamber, the speech has unfairly influenced regulatory decisions, creating advantages for some while disadvantaging others.
Another priority is the repeal of Staff Accounting Bulletin 121 (SAB 121). This rule mandates that cryptocurrency custody providers record assets as liabilities on their balance sheets. The Chamber argued that this regulation imposes unnecessary burdens on participants and could push U.S. investors toward offshore alternatives.
Chamber Urges Action on SAB 121 and Rule 3b-16 Under New SEC Leadership
A bill to repeal SAB 121 has received bipartisan support in Congress. However, the measure was vetoed by President Joe Biden, leaving the issue unresolved.
Additionally, the Chamber urged the SEC to reconsider its Rule 3b-16 proposal, which seeks to expand the definition of exchanges to include decentralized finance protocols.
The Chamber noted that its recommendations have significant backing within the crypto industry and that the incoming leadership under Paul Atkins could address these concerns. Atkins, who served as an SEC commissioner from 2002 to 2008, is expected to succeed Gary Gensler as SEC Chair. Gensler, known for his enforcement-driven approach, will step down on Jan. 20.
Collaboration with SEC Commissioners
The Token Alliance leadership also discussed the 2025 policy priorities with SEC Commissioners Hester Peirce and Mark Uyeda. During these meetings, they presented the goal of creating a more transparent and equitable regulatory framework for digital assets.
Under its new leadership, the SEC could develop a more balanced relationship with the crypto industry by addressing these pressing regulatory challenges.
