US Chamber of Commerce, another strong political name has been added to the list of authorities that is asking the regulators clearer regulations for cryptocurrencies and any activities related to them, including initial coin offerings (ICOs).
The request has come as part of the new FinTech Innovation Initiative, which released its first report last week, outlining FinTech policy and recommendations the group will be presented to legislators and regulators.
US Chamber of Commerce says raising capital currently is difficult
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.
In its report, the US Chamber said that the Entrepreneurs are finding it too difficult to raise capital, and this problem is not only at the start but persists throughout the lifecycle of the company as the company grows.
The Chamber found the regulatory requirements complex and expensive which according to them has stunted the growth of companies in the US referring to the stats that the number of listed companies in 2016 half of what they were in 1996. It also feels this is the main reason American innovators are searching for new, more efficient ways to raise capital, such as crowdfunding and ICOs.
US Chamber urges govt. to lead the digital transformation
The Chamber urged the SEC to continue studying ICOs to see how they can be an effective tool for raising capital while protecting investors and ensuring applicable laws are met. They have also urged the CFTC to study how cryptocurrency is functioning in the futures and commodities market.
In both cases, it urges the agencies to regulate the products and services enabled by the technology instead of the technology itself as this approach would alleviate contradictory and overlapping rules and allow institutions to focus on what really matters – reducing consumer risk and preventing fraud.
The Chamber also believes it is important to emphasize that streamlined and efficient consideration is critical to sustaining these technologies because there is generally a significant lag time between the speed of technological innovation and regulatory action. To quote from the report,
“As the crypto industry rapidly evolves, it is critical that both the SEC and CFTC are mindful of the fast-moving pace of technology, create streamlined processes to assess the tokens and be prepared to issue relief so regulatory hurdles do not become a barrier to entry. We look forward to working with both of these agencies as the use of tokens grows and regulatory expectations are clarified.”
The overall report has been concluded by saying that,
“The speed of innovation is not slowing anytime soon and will only likely increase in the years to come. It is critical the U.S. government and states encourage these innovations that will shape the economic landscape and transform our daily lives. We urge the U.S. government to lead this digital transformation and promote economic growth, to ensure the U.S. maintains a competitive advantage on the world stage and plays a key role in the development of global financial policy.”
With US Chamber also joining the league of government and business committees asking for clarification on cryptocurrencies and ICO, the pressure is now building upon SEC and CFTC to act upon as sooner or later they will be answerable.
Will this pressure compel SEC and CFTC to act upon regulations for cryptos and ICO’s or will this too fall on deaf ears? Do let us know your views on the same.