Binance.US, the American arm of cryptocurrency exchange Binance, has received support from a major crypto lobbyist group in its battle against a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The US Chamber of Digital Commerce submitted an amicus brief arguing that the SEC’s claims against Binance.US are misguided and that its actions are deterring crypto businesses from operating in the United States.
The lobbyists echoed previous criticisms from industry leaders, accusing the SEC of implementing “regulation by enforcement” and creating a hostile regulatory environment for crypto businesses. They claimed that the trillion-dollar blockchain economy is avoiding the U.S. due to the opaque and hostile regulatory environment.
The SEC has already taken enforcement actions against numerous prominent crypto firms, including Kraken, Coinbase, and Binance. Many pro-crypto politicians and industry leaders have warned that continued regulatory aggression from the agency would drive crypto businesses out of the country. Nexo, a crypto lender, even closed down its Earn program in the U.S. after paying a $45 million fine to the SEC.
The SEC’s complaints typically revolve around allegations of unregistered securities offerings or listings by crypto firms. In the case of Binance, the SEC claimed that the exchange offered over a dozen securities for trade without proper registration. However, industry leaders like Coinbase argue that there are no clear rules governing how cryptocurrencies interact with securities laws and accuse the SEC of overstepping its authority.
The Chamber of Digital Commerce shared this perspective in its filing, stating that the SEC’s complaint blurs the distinction between an investment-contract security and the asset itself. They likened it to accusing a grocery store of violating securities laws by selling fruit like oranges.
This is not the first time such arguments have been made against the SEC. Ripple, for instance, successfully contested the agency’s claim that its token XRP was a security. A court ruled in favor of Ripple earlier this year, leading the SEC to drop all charges related to the case.
In conclusion, Binance.US has gained support from the US Chamber of Digital Commerce in its legal battle against the SEC. The lobbying group criticized the SEC for its regulatory approach and claimed that it is driving crypto businesses away from the U.S. The SEC’s allegations against Binance and other crypto firms typically center around unregistered securities offerings. However, industry leaders argue that there are no clear rules governing this area and accuse the SEC of exceeding its authority. Similar arguments have been made in other cases, including Ripple’s successful defense against the SEC’s claim that XRP is a security.
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